Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Technology
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Visual Stories
  • Reviews
  • Phone Reviews
  • Fitness Bands Reviews
  • Speakers Reviews
  • Find Cricket Statistics
Hindi
More
In the news
Twitter
Gmail
Reserve Bank Of India (RBI)
Reliance
Sensex
New Labour Laws in India
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Technology
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Visual Stories
Reviews
Phone Reviews
Fitness Bands Reviews
Speakers Reviews
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / Business News / CBI books Gujarat firm for Rs 22,842 crore loan fraud
Business

CBI books Gujarat firm for Rs 22,842 crore loan fraud

CBI books Gujarat firm for Rs 22,842 crore loan fraud
Written by Pratyush Deep Kotoky
Feb 13, 2022, 06:45 pm 3 min read
CBI books Gujarat firm for Rs 22,842 crore loan fraud
The agency has booked ABG Shipyard Ltd and its former chairman and managing director Rishi Kamlesh Agarwal in connection with the case.

In what is being termed as India's biggest loan fraud case, the Central Bureau of Investigation (CBI) has booked a Gujarat-based shipbuilding company and its former directors for allegedly defrauding banks to the tune of Rs 22,842 crore. The agency has named ABG Shipyard Ltd and its former chairman and managing director Rishi Kamlesh Agarwal as accused in the case, among others.

Context
Why does this story matter?
  • The case came to light following a complaint filed by the State Bank of India.
  • This is reportedly the biggest bank fraud case registered by CBI, even bigger than the Punjab National Bank scam that involved fugitive diamantaire Nirav Modi and his uncle Mehul Choksi.
  • According to CBI, the loan funds were used for purposes other than for which they were released by banks.
Details
Other ex-directors also named in case

Besides Agarwal, CBI has also named the then Executive Director Santhanam Muthaswamy, Directors Ashwini Kumar, Sushil Kumar Agarwal, Ravi Vimal Nevetia, and another company ABG International Pvt Ltd in the case. The offenses against them include criminal conspiracy, cheating, criminal breach of trust, and abuse of official position under the Indian Penal Code and the Prevention of Corruption Act, officials told PTI.

Quote
Searches were conducted at 13 locations: CBI

In a statement, CBI said, "Searches were conducted on Saturday at 13 locations in the premises of accused including private company, directors at Surat, Bharuch, Mumbai, Pune, etc." The agency also claimed that they have recovered "incriminating documents" during the search operations.

Case
CBI registered the FIR on February 7

As per reports, the SBI had first filed a complaint on November 8, 2019, against ABG Shipyard, on which the CBI had sought some clarifications on March 12, 2020. The bank filed a fresh complaint again in August 2020. After "scrutinizing" for over one and a half years, the CBI acted on the complaint, filing an FIR on February 7.

Fraud
Company defrauded 28 banks

The company was sanctioned credit facilities from 28 banks and financial institutions, with the SBI having exposure of Rs 2,468.51 crore, reports said. The Forensic Audit by Ernst and Young has shown that between 2012-17, the accused colluded together and committed illegal activities, including diversion of funds, misappropriation, and criminal breach of trust, officials told PTI.

Data
How much money ABG Shipyard owes to different banks?

According to reports, ABG Shipyard owes Rs. 7,089 crore to ICICI Bank, Rs. 3,639 crore to IDBI Bank, Rs. 2,925 crore to State Bank, Rs. 1,614 crore to Bank of Baroda, and Rs. 1,244 crore to Punjab National Bank, among others.

Allegations
Funds were diverted to make investment in overseas subsidiaries: CBI

CBI said the firm diverted loan funds through subsidiaries in Singapore and through other means between 2012-2017. It transferred huge amounts to "its related parties and subsequently, adjustment entries were made," the agency added. It further claimed that bank loans to the company were diverted to make investments in the "overseas subsidiary." The funds were also used to purchase assets, it added.

Information
Loan declared NPA in 2016

Notably, the loan to the company was declared a non-performing asset (NPA) in July 2016. As per reports, the company is already facing proceedings in the National Company Law Tribunal (NCLT).

ABG Shipyard
What do we know about ABG Shipyard?

ABG Shipyard, owned by ABG Group, is one of India's major players in shipbuilding and ship repair. ABG shipyards are located in Dahej and Surat in Gujarat. It has the capacity to build vessels up to 18,000 deadweight tonnage (DWT) at Surat Shipyard and 1,20,000 DWT at Dahej Shipyard. It has constructed over 165 vessels, 46 for overseas customers, in the past 16 years.

Share this timeline
Facebook
Whatsapp
Twitter
Linkedin
Pratyush Deep Kotoky
Pratyush Deep Kotoky
Twitter
Pratyush Deep Kotoky covers national and politics news at NewsBytes. His over three-year-long career involves reporting on sociopolitical issues across India, particularly the northeast region. His previous stints include 101Reporters, The Sunday Guardian, and Inshorts, and he has also written for Asia Times, Firstpost, and Newslaundry. He has a postgraduate degree in Journalism from the Indian Institute of Mass Communication, Delhi.
Latest
India
Central Bureau Of Investigation (CBI)
Gujarat
State Bank of India (SBI)
National Company Law Tribunal
Related
Latest
2022 Wimbledon: Rafael Nadal beats Ricardas Berankis in second round
2022 Wimbledon: Rafael Nadal beats Ricardas Berankis in second round Sports
Top 5 4K LED TVs in India under Rs. 40,000
Top 5 4K LED TVs in India under Rs. 40,000 Technology
2022 Wimbledon: Iga Swiatek progresses after 37th straight win
2022 Wimbledon: Iga Swiatek progresses after 37th straight win Sports
Jos Buttler announced as England's white-ball captain: Details here
Jos Buttler announced as England's white-ball captain: Details here Sports
Decoding the 2022 summer transfer window plans of AS Roma
Decoding the 2022 summer transfer window plans of AS Roma Sports
India
Formula E confirms Hyderabad E-Prix for February 2023
Formula E confirms Hyderabad E-Prix for February 2023 Auto
Hero Lectro e-cycles become cheaper thanks to Rs. 15,000 subsidy
Hero Lectro e-cycles become cheaper thanks to Rs. 15,000 subsidy Auto
Bengaluru Airport installs diaper changing room in men's washroom
Bengaluru Airport installs diaper changing room in men's washroom Lifestyle
Who is Mohammed Zubair, journalist arrested for hurting religious sentiments?
Who is Mohammed Zubair, journalist arrested for hurting religious sentiments? India
Sri Lanka under virtual lockdown over fuel scarcity amid crisis
Sri Lanka under virtual lockdown over fuel scarcity amid crisis World
More News
Central Bureau Of Investigation (CBI)
#JiahKhanDeathCase: Sooraj Pancholi seeks non-bailable warrant for Jiah Khan's mother
#JiahKhanDeathCase: Sooraj Pancholi seeks non-bailable warrant for Jiah Khan's mother Entertainment
SSR case: NCB files draft charges against Rhea Chakraborty, brother
SSR case: NCB files draft charges against Rhea Chakraborty, brother Entertainment
Delhi court reserves order on Satyendar Jain's bail plea
Delhi court reserves order on Satyendar Jain's bail plea India
Sushant Singh Rajput second death anniversary: Fight for justice continues
Sushant Singh Rajput second death anniversary: Fight for justice continues Entertainment
Delhi: Satyendar Jain sent to ED custody till June 9
Delhi: Satyendar Jain sent to ED custody till June 9 India
More News
Gujarat
Vadodara girl adopts zoo leopard after losing her pet dog
Vadodara girl adopts zoo leopard after losing her pet dog Lifestyle
Gujarat: SIT to probe conspiracy allegations against Teesta, two others
Gujarat: SIT to probe conspiracy allegations against Teesta, two others India
Gujarat riots: Meet Teesta Setalvad, the co-petitioner against PM Modi
Gujarat riots: Meet Teesta Setalvad, the co-petitioner against PM Modi India
Meet Abbas bhai, who Modi mentioned as friend in blog
Meet Abbas bhai, who Modi mentioned as friend in blog India
#NewsBytesExplainer: Why Russia-Ukraine war is hitting Gujarat's diamond industry hard?
#NewsBytesExplainer: Why Russia-Ukraine war is hitting Gujarat's diamond industry hard? Business
More News
State Bank of India (SBI)
India's Q4 GDP pegged at 2.7%, lower than Q3: Experts
India's Q4 GDP pegged at 2.7%, lower than Q3: Experts Business
Bharat Bandh on March 28-29: These services may be hit
Bharat Bandh on March 28-29: These services may be hit India
ED arrests Shakti Bhog CMD in money laundering case
ED arrests Shakti Bhog CMD in money laundering case India
SBI will charge beyond four free cash withdrawals every month
SBI will charge beyond four free cash withdrawals every month India
Two held for ATM fraud amounting to Rs. 92.39 lakh
Two held for ATM fraud amounting to Rs. 92.39 lakh India
More News
National Company Law Tribunal
Jet Airways to resume domestic services in Q1 of 2022
Jet Airways to resume domestic services in Q1 of 2022 Business
NCLT approves Jalan-Kalrock consortium's plan for Jet Airways
NCLT approves Jalan-Kalrock consortium's plan for Jet Airways Business
Kapil Sharma files complaint against car designer Dilip Chhabria
Kapil Sharma files complaint against car designer Dilip Chhabria Entertainment
New fraud of over Rs. 1,000 crore reported by DHFL
New fraud of over Rs. 1,000 crore reported by DHFL Business
Exporters flee country after cheating 6 banks; SBI files complaint
Exporters flee country after cheating 6 banks; SBI files complaint Business
More News
Related
CBI books DHFL's Wadhawans in Rs. 34000-crore bank fraud case
CBI books DHFL's Wadhawans in Rs. 34000-crore bank fraud case India
Next News Article
Next News Article

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Technology News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Mukesh Ambani Indian Premier League (IPL) Karnataka Samsung Xiaomi West Bengal
Bihar Virat Kohli Rohit Sharma Haryana Narendra Modi Arvind Kejriwal Tamil Nadu Gujarat Yogi Adityanath YouTube
Instagram Hollywood News Uttar Pradesh Kerala Netflix Bollywood News Mamata Banerjee Maruti Suzuki Rahul Gandhi Elon Musk
Shah Rukh Khan Chelsea FC OPPO Akhilesh Yadav Indian Cricket Team Apple Manchester United Salman Khan Cryptocurrency OnePlus
Amitabh Bachchan ICC Women's World Cup Vivo India vs Sri Lanka
About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive IPL 2022 Schedule IPL 2022 Points Table Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2022