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CBI arrests former MD of ABG Shipyard over ₹23k-cr bank fraud case
Rishi Kamlesh Agrawal and others have been booked on charges of criminal conspiracy, cheating, criminal breach of trust and abuse of official position under Indian Penal Code (IPC) and the Prevention of Corruption Act, they added. “He was arrested on Wednesday based on strong evidence. He was also evasive in his answers during interrogation,” a CBI official said on condition of anonymity.
The Central Bureau of Investigation (CBI) on Wednesday arrested former chairman and managing director (CMD) of ABG Shipyard Ltd, Rishi Kamlesh Agrawal, in connection with an alleged bank fraud of ₹22,842 crore, officials said.
Agrawal and others have been booked on charges of criminal conspiracy, cheating, criminal breach of trust and abuse of official position under Indian Penal Code (IPC) and the Prevention of Corruption Act, they added.
“He was arrested on Wednesday based on strong evidence. He was also evasive in his answers during interrogation,” a CBI official said on condition of anonymity.
ABG Shipyard Ltd, the flagship company of ABG Group and a major player in the Indian ship-building industry, has been accused of cheating a consortium of 28 banks led by ICICI Bank of ₹22,842 crore between 2005 and 2012.
ICICI is believed to have the highest exposure of ₹7,089 crore, followed by IDBI Bank ( ₹3,639 crore), State Bank of India ( ₹2,925 crore), Bank of Baroda ( ₹1,614 crore) and Punjab National Bank ( ₹1,244 crore).
It was on November 8, 2019 that the State Bank of India first filed a complaint with the CBI, prompting the agency to seek some clarifications from the company on March 12, 2020.
The bank filed a fresh complaint in August 2020 and after “scrutinizing” the same for over one-and-a-half years, the CBI filed a first information report (FIR) on February 7 this year.
Agrawal has been questioned several times since then.
“I am surprised that despite so much cooperation with the CBI, my client has been arrested,” his lawyer Vijay Aggarwal said.
Investigations by the CBI revealed that huge amounts of money taken from banks may have been diverted through over 100 shell companies in India and abroad by Agrawal, his associates and companies linked to ABG, officials said.
In a detailed statement in February, the CBI said a majority of disbursements in ABG Shipyard’s account took place between 2005 and 2012, and the loan account turned into a non-performing asset (NPA) on November 30, 2013.
The Congress-led United Progressive Alliance (UPA) was in power between 2004 and 2014.
The Congress targeted the present ruling Bharatiya Janata Party (BJP)-led government at the Centre after the CBI registered its case earlier this year.
It questioned why the government took five years after the liquidation proceedings of ABG Shipyard to lodge an FIR and accused it of running a “loot and escape” flagship scheme for bank fraudsters while naming Nirav Modi, Mehul Choksi, Lalit Modi, Vijay Mallya, Jatin Mehta, Chetan and Nitin Sandesara, and many others who fled the country after duping Indian banks.
The CBI, however, clarified its probe is focusing on irregularities between 2005 and 2012.
“The fraud is primarily on account of huge transfer by M/s ABG Shipyard to its related parties and subsequently making adjustment entries. It is also alleged that huge investment was made in its overseas subsidiary by diverting the bank loans and funds to purchase huge assets in the name of its related parties. During the perusal of records and initial investigation, it is seen that the critical period was 2005-2012,” CBI spokesperson RC Joshi had said in February.
