ABG Shipyard is the flagship company of ABG Group specializing in shipbuilding and ship repair
New Delhi:
Sources say a money laundering investigation has been started against ABG Shipyard Ltd and its former promoters by the Bureau of Enforcement, in connection with a fraud case filed by the Central Bureau of Investigation, the source said. ABG Shipyard and its former directors – Rishi Agarwal, Santhanam Muthuswamy and Ashwini Kumar – were accused of cheating 28 banks out of a total of Rs 22,842 crore.
The CBI alleged that then ABG Shipyard promoters passed loans to the 98 companies involved. The ED will consider the “diversion” of bank loans, the establishment of shell companies to launder public money and the role of corporate executives in this, the sources said.
The agency is also expected to summon the former directors to Delhi for questioning in the coming days.
ABG Shipyard is the flagship company of ABG Group specializing in shipbuilding and ship repair. The shipyards are located in Dahej and Surat in Gujarat.
Earlier this week, the CBI filed what has been called the country’s largest bank loan scam. The company’s bosses and senior executives have issued notices preventing them from leaving the country.
According to the complaint filed by the State Bank of India, the company owes the bank Rs 2,925, ICICI Bank Rs 7,089, IDBI Bank 3,634 crore, Baroda Bank Rs 1,614, PNB Rs 1,244 and Rs 1,228. switch to IOB. The CBI said the funds were used for purposes other than those for which they were issued by the bank.
In a statement, CBI said that between April 2019 and March 2020, various banks of the group declared ABG Shipyard’s account fraudulent.
“The fraud was primarily caused by ABG Shipyard transferring large sums to related parties and then making adjustments,” the CBI said. Huge investments, it added, have been made in the overseas subsidiary by redirecting bank loans.
“Funds were diverted to purchase huge assets in the name of related parties. During the review of records and initial investigation, it was found that the critical period was 2005-2012.” CBI said.
