#abg shipyard

[gazetteweekly]

Raids At Multiple Locations In Rs 22,842 Crore ABG Shipyard Fraud Case

The Enforcement Directorate or ED today raided multiple premises in Mumbai, Pune and Surat in connection with a money laundering probe again

[karankapoorsblog]

EVERYTHING ABOUT ABG SHIPYARD: INDIA’S BIGGEST BANK FRAUD

The Central Bureau of Investigation (CBI) has booked ABG Shipyard Limited, its former Chairman and Managing Director Rishi Kamlesh Agarwal, along with several others including Executive Director Santhanam Muthaswamy, Directors Ashwini Kumar, Ravi Vimal Nevetia, and Sushil Kumar Agarwal for allegedly cheating a consortium of banks led by State Bank of India of over Rs. 22,842 crore, making it India’s biggest case of bank fraud.

“Searches were conducted on Saturday at 13 locations in the premises of accused including private company, directors at Surat, Bharuch, Mumbai, Pune, etc which led to the recovery of incriminating documents,” said the CBI in a statement.

The SBI bank filed the first-ever complaint in 2019 on November 8th on which the CBI had sought some explanations on March 12, 2020. A fresh complaint was again filed in the month of August in the same year. After investigating the case for one and a half years, the CBI acted on the complaint filing an FIR on February 7, 2022.

According to figures from the forensic audit that were included in the CBI complaint, ABG Shipyard Limited owed 70.89 billion rupees to ICICI Bank, 36.34 billion rupees to IDBI Bank, 29.25 billion rupees to the State Bank of India, 16.14 billion rupees to Bank of Baroda, 12.44 billion rupees to Punjab National Bank and 12.28 billion rupees to Indian Overseas Bank.

ABOUT ABG SHIPYARD?

It was March 15, 1985, when ABG Shipyard Limited (ABGSL) was incorporated with its registered office in Ahmedabad, Gujarat. It is a flagship enterprise of the ABG Group, originally promoted by Rishi Agarwal. It is engaged in the business of shipbuilding and ship repair. It has shipyards located at Surat and Dahej in Gujarat with the capacity to build vessels up to 18,000 deadweight tonnage (DWT) at Surat Shipyard and 1,20,000 deadweight tonnage (DWT) at Dahej Shipyard.

Since the establishment of the company, it has constructed over 165 vessels in the last 16 years including specialized vessels like newsprint carriers, interceptor boats, floating cranes, loading bulk cement carriers, pusher tugs, dynamic positioning diving support vehicles, etc.

ABG SHIPYARD FRAUD: WHAT EXACTLY HAPPENED?

ABG Shipyard experienced huge success for some years but ran into hard times from the year 2012. The loans were given to the company between 2005-2010 by the banks.

The company’s loan account was first declared as NPA in July 2016. NPA refers to Non-Performing Asset; it is a loan for which the principal or interest payment is overdue for 90 days.

The audit by Ernst and Young mentioned that between 2012-2017, “the accused have colluded together and committed illegal activities including diversion of funds, misappropriation and criminal breach of trust and for purposes other than for the purpose for which the funds are released by the Bank.”

In April 2019, the National Company Law Tribunal (NCLT) ordered the liquidation of the company under the Insolvency & Bankruptcy Code (IBC).

In November 2019, SBI filed its first complaint against the company

[karankapoorsblog]

EVERYTHING ABOUT ABG SHIPYARD; INDIA’S BIGGEST BANK FRAUD

The Central Bureau of Investigation (CBI) has booked ABG Shipyard Limited, its previous Chairman and Managing Director Rishi Kamlesh Agarwal, alongside a few others including Executive Director Santhanam Muthaswamy, Directors Ashwini Kumar, Ravi Vimal Nevetia, and Sushil Kumar Agarwal for supposedly swindling a consortium of banks drove by State Bank of India of over Rs. 22,842 crore, making it India's greatest instance of bank extortion.

"Look were led on Saturday at 13 areas in the premises of denounced including privately owned business, chiefs at Surat, Bharuch, Mumbai, Pune, and so on which prompted the recuperation of implicating archives," said the CBI in a proclamation.

The SBI bank recorded the very first objection in 2019 on November eighth on which the CBI had looked for certain clarifications on March 12, 2020. A new grievance was again recorded in the long stretch of August around the same time. Subsequent to researching the case for oneself and a half years, the CBI followed up on the objection recording a FIR on February 7, 2022.

As per figures from the criminological review that were remembered for the CBI grumbling, ABG Shipyard Limited owed 70.89 billion rupees to ICICI Bank, 36.34 billion rupees to IDBI Bank, 29.25 billion rupees to the State Bank of India, 16.14 billion rupees to Bank of Baroda, 12.44 billion rupees to Punjab National Bank and 12.28 billion rupees to Indian Overseas Bank.

ABOUT ABG SHIPYARD?

It was March 15, 1985, when ABG Shipyard Limited (ABGSL) was consolidated with its enlisted office in Ahmedabad, Gujarat. It is a leader endeavor of the ABG Group, initially advanced by Rishi Agarwal. It is occupied with the matter of shipbuilding and boat fix. It has shipyards situated at Surat and Dahej in Gujarat with the ability to develop vessels to 18,000 extra weight (DWT) at Surat Shipyard and 1,20,000 extra weight (DWT) at Dahej Shipyard.

Since the foundation of the organization, it has built north of 165 vessels over the most recent 16 years including specific vessels like newsprint transporters, interceptor boats, drifting cranes, stacking mass concrete transporters, pusher pulls, dynamic situating plunging support vehicles, and so on

ABG SHIPYARD FRAUD: WHAT EXACTLY HAPPENED?

ABG Shipyard experienced gigantic accomplishment for certain years yet ran into tough situations from the year 2012. The credits were given to the organization between 2005-2010 by the banks.

The organization's credit account was first announced as NPA in July 2016. NPA alludes to Non-Performing Asset; it is a credit for which the head or interest installment is late for 90 days.

The review by Ernst and Young referenced that between 2012-2017, "the blamed have conspired together and serious criminal operations including redirection of assets, misappropriation and criminal break of trust and for purposes other than for the reason for which the assets are delivered by the Bank."

In April 2019, the National Company Law Tribunal (NCLT) requested the liquidation of the organization under the Insolvency and Bankruptcy Code (IBC).

In November 2019, SBI documented its first grievance against the organization.

"From the underlying examination, apparently the credits were endorsed somewhere in the range of 2005 and 2010. Apparently the cash was given out without due steadiness from the banks. The misrepresentation sum being scrutinized could be pretty much than what is reflected at this moment," said a CBI source.

Budget summaries uncovered that the organization redirected the advances it took from different Indian banks to buy inclination partakes in ABG Singapore worth $43.5 million.