Rs 22,842 Crore: India’s Biggest Corporate Fraud Under Investigation | 26 Premises Of ABG Shipyard Raided By ED
On April 26, the law enforcement agency Enforcement Directorate (ED) conducted raids across multiple premises and offices of the leading private shipbuilding companies in India ABG Shipyard, on accusations of bank loan fraud.
Here’s everything you need to know about the ED raids conducted on the premises of ABG Shipyard.
ED Raids 26 ABG Shipyard Premises
On account of an alleged bank loan fraud case of laundering money worth Rs 22,842 crore from a consortium of 28 banks, led by the private lending major ICICI Bank, the government agency Enforcement Directorate conducted raids at 26 premises linked to ABG Shipyard on Tuesday.
According to officials privy of the matter, the raids were conducted under the criminal sections of the Prevention of Money Laundering Act or PMLA. These searches were conducted not only in the offices and premises of ABG Shipyard but also at the premises of its sister companies and executives.
Searches were conducted at different locations in Pune, Mumbai, Surat and other places.
The ED officials conducted searches to find documents of financials and other related information of the company, along with its former promoters and people linked in the laundering cases, familiar sources said.
What Is the Case Booked Against ABG Shipyard?
A FIR complaint filed by Central Bureau of Investigation (CBI) somewhere around February 2022, led the Enforcement Directorate to file a money laundering case against the shipbuilding major in Feb 2022.
After preliminary investigation, it was found out that huge sums of money were debited from banks and are assumed to be diverted within the country and abroad through more than 100 shell companies.
The CBI had booked ABG Shipyard and its chairman and managing director at the time Rishi Kamlesh Agarwal, together with others for allegedly cheating a consortium of banks of over Rs 22,842 crore, stated PTI.
The consortium was led by ICICI Bank, which had the highest exposure to loans worth Rs 7,089 crore, followed by IDBI Bank, SBI, Bank of Baroda and Punjab National Bank.
In a detailed statement, the CBI said in February that a majority of disbursements in ABG Shipyard’s account took place between 2005 and 2012, and the loan account turned into a non-performing asset (NPA) on November 30, 2013. The Congress-led United Progressive Alliance (UPA) was in power between 2004 and 2014, added a HT report.
Comments are closed, but trackbacks and pingbacks are open.