The locations linked to ABG Shipyard Ltd that are being searched by the Enforcement Directorate are in Mumbai, Pune and Surat, The shipbuilding company is accused of cheating a consortium of 28 banks led by ICICI Bank
The Enforcement Directorate (ED) has on Tuesday carried out raids at 26 premises linked to ABG Shipyard Ltd in Mumbai, Surat and Pune, in connection with a money laundering probe against the shipbuilding company. The company is accused in an alleged Rs 22,842 crore bank loan fraud case.
ABG Shipyard is accused of cheating a consortium of 28 banks led by ICICI Bank. The ED had filed a money laundering case in February after studying a CBI FIR (case) against the former promoters of the ship building company.
“As many as 26 premises are being searched in these cities by the federal agency under the criminal sections of the Prevention of Money Laundering Act (PMLA),” they said.
A report by news agency PTI said, the CBI as well as ED have named ABG Shipyard Ltd’s former chairman and managing director Rishi Kamlesh Agrawal and other directors of the company in their cases.
It had also named 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 offences of criminal conspiracy, cheating, criminal breach of trust and abuse of official position under the Indian Penal Code (IPC) and the Prevention of Corruption Act.
ABG Shipyard case
According to a report by Hindustan Times, the CBI in February released a detailed statement in which it stated that 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 30 November, 2013.
The Congress-led United Progressive Alliance (UPA) was in power between 2004 and 2014.
ICICI has the highest exposure of Rs 7,089 crore, IDBI Bank Rs 3,639 crore, State Bank of India (SBI) Rs 2,925 crore, Bank of Baroda Rs 1,614 crore and Punjab National Bank (PNB) Rs 1,244 crore.
With inputs from agencies