Directorate of Enforcement (ED) has attached assets worth Rs. 2747.69 Crore in ABG Shipyard Limited case
Press Release 22.09.2022
Directorate of Enforcement (ED) has attached assets worth Rs. 2747.69 Crore in ABG Shipyard Limited case. The attached assets include Shipyard at Surat and Dahej located in Gujarat, agricultural lands and plots, various commercial and residential premises in Gujarat and Maharashtra and bank accounts owned by ABG Shipyard Ltd., its group companies and other related entities.
ED initiated money laundering investigation on the basis of the FIR dated 07.02.2022 registered by Central Bureau of Investigation (CBI), AC-V, Delhi against ABG Shipyard Limited., & others.
Investigation by ED revealed that ABG Shipyard Ltd. and its Chairman & Managing Director Rishi Kamlesh Agarwal availed various credit facilities/loans from consortium of Banks led by ICICI Bank, Mumbai on pretext of meeting its capital requirements and other business expenses but ABG Shipyard Ltd. misappropriated the credit facilities availed from the consortium and diverted the funds for the purposes other than its actual cause in the garb of various loans/advances/investments etc. to various related entities incorporated in India and abroad, that eventually caused monetary loss to the tune of Rs. 22,842/- Crores to the consortium.
ED has traced movable and immovable assets totaling Rs. 2747.69 Crore belonging to ABG Shipyard Ltd., its group companies, Bermaco Energy Systems Ltd., Dhananjay Datar, Savita Dhananjay Datar, Krishna Gopal Toshniwal, Viren Ahuja and attached them under the provisions of Prevention of Money Laundering Act (PMLA), 2002.
Further investigation is in progress.
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CBI ARRESTS THEN CMD OF PRIVATE COMPANY IN AN ON-GOING INVESTIGATION OF A CASE RELATING TO AN ALLEGED LOSS OF RS.22,842 CRORE(APPROX) TO VARIOUS BANKS
The Central Bureau of Investigation has today arrested then CMD of a private company in an on-going investigation of a case relating to an alleged loss of Rs.22,842/- crore (approx) to State Bank of India and other Consortium Member banks.
The arrested accused will be produced before the Competent Court.
A case was registered on a complaint from State Bank of India, against a Private Company (Borrower Company) and others including its CMD; Directors; another private company and unknown Public Servant(s) & Private Person(s) for causing an alleged loss of Rs.22,842 Crore (approx) to State Bank of India and other consortium member banks. It was alleged that the said accused had cheated the consortium of 28 banks including the branches of erstwhile State Bank of Patiala, Commercial Finance Branch, New Delhi, erstwhile State Bank of Travancore, Commercial Branch, New Delhi, State Bank of India, Overseas Branch, Mumbai etc. The consortium of 28 banks was led by ICICI Bank. The said private company/borrower company was engaged in the business of shipbuilding and ship repair. It was further alleged that the accused had colluded together and committed activities by way of diversion of funds for the purpose other than for which the funds were released by the bank. Huge amounts were allegedly transferred by said private company to its related parties and subsequently adjustment entries were made. It was also alleged that bank loans to the said private company was diverted and huge investment was found to be made in the overseas subsidiary. It was further alleged that funds from banks were diverted to purchase huge assets in the name of its related parties.
The account of said private company turned NPA on 30.11.2013. As per Bank Complaint, the NPA was to the tune of Rs. 22,842 crores (approx) and the majority of the disbursement happened between 2005 and 2013 by a consortium of 28 banks led by ICICI Bank including SBI. The account was restructured under CDR mechanism on 27.03.2014. However, the operations of the company could not be revived.
Searches were earlier conducted on 12.02.2022 at 13 locations in the premises of accused including private company, Directors at Surat, Bharuch, Mumbai, Pune etc. which led to recovery of incriminating documents, including books of accounts of the accused borrower company, purchase / sales details, minutes of meetings of Board, Share registers, various contract files, etc.
Investigation is continuing.
