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Home NT Stories India's Biggest Bank Fraud | ABG Shipyard Scam | Rs 22,842 Crore...

India’s Biggest Bank Fraud | ABG Shipyard Scam | Rs 22,842 Crore from 28 Banks

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ABG Shipyard company’s Director allegedly cheated 28 Banks of Rs 22,842 Crore. ABG Shipyard Ltd. is the flagship company of the ABG Group which is into Shipbuilding and Ship Repairing. the shipyards of the company are located in Dahej and Surat in Gujarat.

The CBI has booked then chairman and Managing Director of ABG Shipyard Ltd. Mr. Rishi Kamlesh Agarwal along with others for allegedly cheating a consortium of 28 banks led by ICICI Bank and State Bank of India (SBI).

the Company owes:

  • SBI: Rs 2,925 cr
  • ICICI Bank: Rs 7,089 cr
  • IDBI Bank: Rs 3,634 cr
  • Bank of Baroda: Rs 1,614 cr
  • PNB: Rs 1,244 cr
  • IOB: Rs 1,228 cr
  • LIC has also been scraped by Rs 136 crore
  • there were many more international and small Indian banks
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This Scam was done from 2013 to 2017 but CBI registered an official FIR in 2022. The SBI had first filed a complaint on November 8, 2019, on which the CBI had sought some clarifications on March 12, 2020, it said, adding that the bank filed a fresh complaint in August that year. β€œAfter scrutinizing for over one and a half-year, the CBI acted on the complaint by filing an FIR on February 7, 2022,” the agency said in a statement.

In the first complaint to the CBI, the SBI had stated: “The accused (ABGSL & its officials) colluded together in committing the criminal activities. However, the involvement of unknown persons and public servants may also be examined during investigations.” It added: “The (SBI) Bank is not suspecting the involvement of its staff in the fraud perpetrated by the accused persons. The bank is not suspecting any common conspirator.”

To the CBI’s query on this aspect, the SBI said the Competent Authority had dealt with and closed the matter of ‘staff accountability’ in November 2018.

A Forensic Audit report for the period April 2012-July 2017, revealed how the ABGSL accused “colluded together and committed illegal activities, including diversion of funds, misappropriation, criminal breach of trust and for purposes other than for which the funds are released by the Bank.”

After around 20 months, the SBI lodged the complaint with the CBI, New Delhi, and the latter took cognizance 18 months later to file the FIR on February 7, 2022 – or, over three years after the SBI’s Forensic Audit first red-flagged the ABGSL mega-scam.

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