₹22,842-cr loans default case: ED searches premises linked to ABG Shipyard

The premises searched included those belonging to the residences of the persons and family members related to the accused firm ABG Shipyard Ltd and its related companies, agency sources said. “The searches resulted in the recovery and seizure of unaccounted Indian currency, foreign currency, bullion and jewellery to the tune of ₹5 crore

MUMBAI: The Enforcement Directorate (ED) conducted searches on Friday in Mumbai, Delhi and Pune as part of its money laundering probe related to the alleged default of bank loans worth ₹22,842 crore by private firm ABG Shipyard Limited (ABGSL) and others. The raids resulted in recovery and seizure of unaccounted cash, bullion and jewellery of around ₹5 crore.

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The premises searched included those belonging to the residences of the persons and family members related to the accused firm ABG Shipyard Ltd and its related companies, agency sources said. “The searches resulted in the recovery and seizure of unaccounted Indian currency, foreign currency, bullion and jewellery to the tune of ₹5 crore,” an agency source said. These included ₹85 lakh in cash, foreign currency equivalent to ₹46.85 lakh, bullion (gold and silver coins) worth ₹86.52 lakh and jewellery worth ₹2.83 crore. Several allegedly incriminating documents and materials were also been seized, the sources said.

ED’s investigation was initiated on the basis of a First Information Report registered by the Central Bureau of Investigation (CBI)’s Delhi unit on February 7, 2022, against ABG Shipyard Ltd and others for causing losses to the tune of ₹22,842 crore to a consortium of banks.

ED’s investigation revealed that the ABG Shipyard Ltd and its group companies had allegedly availed of various credit/loan facilities from a consortium of banks led by ICICI Bank for purposes including those related to working capital requirements and capital expenditure.

The company and its subsidiaries, however, allegedly utilised huge funds for purposes other than the sanctioned use of the loan funds and diverted the same through various group companies incorporated in India and abroad, agency sources said. ED’s investigation has so far resulted in the provisional attachments of properties worth around ₹2,747.69 crore. The agency had earlier also filed its chargesheet in the case.