Rs. 23,000 Crore ABG Shipyard Fraud Case: CBI Files Chargesheet Against Ex-chairman Rishi Agarwal And Others

Rs. 23,000 Crore ABG Shipyard Fraud Case: CBI Files Chargesheet Against Ex-chairman Rishi Agarwal And Others

November 22, 2022: CBI has so far collected Rs. 5,000 crores has come to light and the investigation has been kept open. Apart from this, the agency has also seized some luxury properties of the former chairman of ABG Shipyard, Rishi Agarwal.

The CBI has alleged that the accused misrepresented and falsified the company’s audited books. The Central Bureau of Investigation (CBI) on Saturday registered a case against ABG Shipyard and 24 others, including its former chairman Rishi Agarwal and other officials, for Rs.

A charge sheet has been filed in the 23,000 crore loan fraud case. The agency has named five individuals and 19 companies, including the accused Agarwal and three companies based in Singapore.

A CBI spokesperson said in a statement that during the investigation, it was found that the accused had conspired with others and with the help of his operatives involving several entities within India and outside India and continued to divert and siphon bank funds continuously, CBI said in a statement.

A spokesperson said in a statement. The accused embezzled huge amounts of bank and business funds from ABG Shipyard and built huge personal assets in the form of immovable properties including luxury flats, high-rise buildings, and lands (currently worth in crores).

Charge sheet Funds were also diverted through the creation of a web of companies, a part of which was used to acquire properties in prominent locations including Mumbai and Surat, a CBI spokesperson said.

It consists of four luxury apartments, a residential tower with 14 flats in Mumbai, and commercial land of about 5-6 acres in Surat.

CBI has so far collected Rs. 5,000 crores has been detected and the investigation is open. Apart from this, the agency has also seized some of Agarwal’s luxury properties.

The CBI has alleged that the accused misrepresented and falsified the company’s audited books. “Incorrect entries and information relating to corporate guarantee, overstatement of subsidy amount and non-disclosure of non-fund based credit facilities received from banks and financial institutions were made in the audited financial statements,” the statement said.

It said a CBI investigation has shown that numerous bank guarantees were issued by the company to its three Singapore-based offshore group entities between 2010-2013, resulting in alleged diversion and subsequent losses to the banks.

“It was also found that the borrower company embezzled public funds by allegedly establishing a letter of credit in favor of another Singapore-based firm for the importation of designs and drawings for various vessels,” the agency said. 25 Those against whom the charge sheet has been filed include former chairman of ABG Shipyard Limited Rishi Agarwal, company and former officers – CFO Dhananjay Datar, Vice President Accounts Praveen Bhandari, then Assistant Vice President (Accounts), Santhanam Muthuswamy, one Balaji Gopal. and M.N. Ahmed Nisar and Kumar of a company.

BG Shipyard Fraud – ABG Shipyard Limited, the flagship company of the ABG Group and a major player in the Indian ship-building industry, was acquired between 2005 and 2012 by a consortium of 28 banks led by ICICI Bank for Rs. 22,842 crores fraud is alleged.

The biggest fraud victim is believed to be ICICI Bank with an exposure of Rs 7,089 crore, followed by IDBI Bank (Rs 3,639 crore), State Bank of India (Rs 2,925 crore), Bank of Baroda (Rs 1,614 crore) and Punjab National Bank (1,244 crores).

The CBI had on February 7 this year registered a case under the IPC and Prevention of Corruption Act on the complaint of the State Bank of India for alleged offenses of criminal conspiracy, cheating, criminal breach of trust and abuse of official position. Agarwal was arrested on September 21 and is currently in judicial custody.

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