This is the biggest bank fraud case ever registered by the CBI, official quoted by wires agencies said. The case pertained to funds gotten and misused during the 2012-17 period.
Rishi Agarwal, the then CMD, was also booked along with the company. Besides Agarwal, the then Executive Director Santhanam Muthaswamy, Directors Ashwini Kumar, Sushil Kumar Agarwal and Ravi Vimal Nevetia and another company ABG International Pvt Ltd were also named in the FIR.
Between 2012-17, the accused in the case colluded together and engaged in diversion of funds, misappropriation and criminal breach of trust, the forensic investigation showed.
As many as 28 banks and financial institutions were victims of the alleged scam, as per the report. Funds given by these bodies were used for purposes other than for which they were given, CBI’s FIR said.
State Bank of India has filed a complaint over the scam. It says the company owes it Rs 2,925 crore. The other banks include ICICI Bank (Rs 7,089 crore), IDBI Bank (Rs 3,634 crore), Bank of Baroda (Rs 1,614 crore), PNB (Rs 1,244 crore and IOB (Rs 1,228 crore).
“The Forensic Audit report dated 18.01.2019 submitted by M/s. Ernst & Young LP for the period April 2012 to July 2017 revealed that the accused have colluded together and committed illegal activities including diversion of funds, misappropriation, and criminal breach of trust and for purposes other than for the purpose for which the funds are released by the Bank”, the FIR says.
ABG Shipyard Ltd is known for shipbuilding and repair. It has its yards in Gujarat’s Surat and Dahej.