Rishi Kamlesh Agarwal, the founder and current chairman of ABG Shipyard Limited, was arrested by the Central Bureau of Investigation (CBI) today in connection with an alleged bank fraud worth more than Rs 22,842 crore, according to officials.
According to them, the CBI filed charges against Agarwal and others under the Indian Penal Code (IPC) and the Prevention of Corruption Act for criminal conspiracy, cheating, criminal breach of trust, and misuse of official position.
ABG Shipyard Ltd and the State Bank of India have been doing business together since 2001, claims the investigative agency. The majority of the money were given between 2005 and 2012 by a group of 28 institutions, including SBI and led by ICICI Bank.
ABG Shipyard’s account was reported as fraudulent by several banks in the consortium between April 2019 and March 2020. On November 30, 2013, the company’s account became a non-performing asset because the majority of payments were made between 2005 and 2012. The CBI had stated in February that the accused firm and its officials had defrauded 28 banks out of a total of Rs 22,842 crore.
‘The fraud is primarily on account of a huge transfer by ABG Shipyard Ltd to its related parties and subsequently making adjustment entries. It is also alleged that huge investments were made in its overseas subsidiary by diverting bank loans. The critical period of the investigation is 2005-2012,’ according to a statement from the CBI.
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