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ED registers PMLA case in ABG Shipyard fraud
ABG is accused of cheating a consortium of 28 banks led by ICICI Bank of ₹22,842 crore, with ICICI having 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).
The Enforcement Directorate (ED) on Wednesday registered a money laundering case linked to an alleged bank fraud worth ₹22,842 crore involving ABG Shipyard Ltd, one of the largest private shipbuilding companies, people familiar with the development said.
ABG is accused of cheating a consortium of 28 banks led by ICICI Bank of ₹22,842 crore, with ICICI having 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).
A senior officer of ED, who spoke on condition of anonymity, confirmed the development, saying that the agency will look into “the diversion of funds by ABG office bearers within India and abroad”.
Preliminary investigations have suggested that there could be at least 100 shell companies involved in the case which were used for diverting public money, the official added.
ED’s case, filed under Prevention of Money Laundering Act (PMLA), is based on a Central Bureau of Investigation (CBI) first information report (FIR) filed on February 7. Those named as accused include ABG’s former chairman and managing director Rishi Kamlesh Agrawal and other directors of the company.
In a detailed statement issued on Tuesday, the CBI said it has issued lookout notices for Agrawal and eight others to ensure they do not flee India. The accused have been located in India, the agency added.
The majority of disbursement in ABG Shipyard’s account took place between 2005 and 2012, and the loan account turned a non-performing asset (NPA) on November 30, 2013, it said.
The Congress-led United Progressive Alliance (UPA) was in power between 2004 and 2014.
