CBI prosecutes ABG in biggest bank fraud case of Rs 22,842 crore

The CBI has registered a case against ABG Shipyard Limited and its then Chairman and Managing Director Rishi Kamlesh Agarwal, among others, in the country’s biggest bank fraud case.
The case was registered in connection with an alleged fraud of over Rs 22,842 crore from a consortium of banks led by State Bank of India, officials said on Saturday.

Apart from Agarwal, the agency has also booked the then executive director Santhanam Muthaswamy, directors – Ashwini Kumar, Sushil Kumar Agarwal and Ravi Vimal Nevetia and another company ABG International Pvt Ltd for alleged offenses such as criminal conspiracy, cheating, criminal breach of trust and official misappropriation. filed suit for

He said that these people have been prosecuted under the Indian Penal Code and the Prevention of Corruption Act.

The bank’s consortium had first filed the complaint on November 8, 2019, on which the CBI had sought some clarifications on March 12, 2020.

The consortium of banks filed a fresh complaint in August that year and after more than a year and a half of investigation, the CBI acted on it.

SBI as well as 28 banks and financial institutions had sanctioned loans worth Rs 2468.51 crore to the company, the official said.

He said the forensic audit revealed that between 2012-17, the accused allegedly colluded and carried out illegal activities, including misappropriation of funds and criminal breach of trust.

This is the biggest bank fraud case ever registered by the CBI.