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CBI books THIS firm in very top monetary institution fraud case of over Rs 22,842 crore

Reported By: | Edited By: DNA Web Crew |Source: PTI |Up up to now: Feb 13, 2022, 09: 37 AM IST

In its very top monetary institution fraud case, the CBI has booked ABG Shipyard Ltd and its former chairman and managing director Rishi Kamlesh Agarwal alongside with others for allegedly cheating a consortium of banks led by Teach Financial institution of India of over Rs 22,842 crore, officers said on Saturday.

Besides Agarwal, the company has also named the then executive director Santhanam Muthaswamy, administrators Ashwini Kumar, Sushil Kumar Agarwal and Ravi Vimal Nevetia and one other firm ABG World Pvt Ltd for alleged offences of criminal conspiracy, cheating, criminal breach of believe and abuse of legitimate space below the IPC and the Prevention of Corruption Act, they said.

“Searches had been performed on Saturday at 13 locations in the premises of accused including non-public firm, administrators at Surat, Bharuch, Mumbai, Pune and so on which led to restoration of incriminating paperwork,” CBI said in a press originate.

The monetary institution had first filed a grievance on November 8, 2019 on which the CBI had sought some clarifications on March 12, 2020.

The monetary institution filed a recent grievance in August that yr. After “scrutinising” for over one and a half of years, the CBI acted on the grievance submitting an FIR on February 7.

The firm became sanctioned credit companies from 28 banks and monetary institutions led by ICICI Financial institution with the SBI having publicity of Rs 2468.51 crore, the officers said.

The Forensic Audit by Ernst and Young has proven that between 2012-17, the accused colluded collectively and committed unlawful actions including diversion of funds, misappropriation and criminal breach of believe, they said.

It is the perfect monetary institution fraud case registered by the Central Bureau of Investigation (CBI).

Funds had been previous for purposes rather then for which they had been released by banks, it said.

The loan epic became declared as non-performing asset (NPA) in July 2016 and fraud in 2019.

In its grievance, the Teach Financial institution of India said ABG Shipyard Ltd (ABGSL) is the flagship firm of the ABG Neighborhood which engaged in the enterprise of ship building and ship-restore.

The ABGSL being a predominant participant in Indian ship building industry operates from shipvards are located at Dahej and Surat in Gujarat with skill to have vessels as much as 18,000 dull weight tonnage (DWT) at Surat Shipyard and 1,20,000 dull weight tonnage (DWT) at Dahej Shipyard.

The firm has constructed over 165 vessels (including 46 for export market) in the closing 16 vears including in reality professional vessels cherish the newsprint carriers. Self-discharging and loading bulk cement carriers, floating cranes and so on with class approval of all global classification societies cherish Lloyds, American Bureau of Transport. Bureau Veritas, IRS, DNV, the grievance said.

“Global crisis has impacted the shipping industry due to tumble in commodity search facts from and costs and subsequent tumble in cargo search facts from. The cancellation of contracts for few ships and vessels resulted in piling up of inventory. This has resulted in paucity of working capital and led to important elevate in the working cycle. Thereby traumatic the liquidity explain and monetary explain,” the grievance said.

The SBI said there became no search facts from of business vessels because the industry became going through downturn even in 2015 which became further aggravated due to lack of defence orders making it advanced for the firm to abet compensation time desk, it said.

“The firm has been referred to NCLT, Ahmedabad, by ICICI Financial institution for CIRP,” it said.

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