CBI Prosecutes ABG in the Country’s Biggest Bank Fraud Case Involving Rs.22842 crore

In the country’s biggest bank fraud case, the CBI has filed a case against ABG Shipyard Limited and its erstwhile Chairman and Managing Director Rishi Kamlesh Agarwal, among others.

Officials said on Saturday that the case was filed in connection with an alleged fraud of over Rs 22,842 crore from a consortium of banks led by State Bank of India.

Apart from Agarwal, the agency has also charged Santhanam Muthaswamy, Ashwini Kumar, Sushil Kumar Agarwal, and Ravi Vimal Nevetia, as well as another business, ABG International Pvt Ltd, with criminal conspiracy, defrauding, criminal breach of trust, and official misappropriation; a lawsuit was filed.

These individuals, he claimed, were charged under the Indian Penal Code and the Prevention of Corruption Act.

On November 8, 2019, the bank’s consortium filed a complaint, which the CBI requested explanations on on March 12, 2020.

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

According to the official, the company received loans of Rs.2468.51 crore from SBI and 28 other banks and financial organisations.

According to the forensic audit, the accused allegedly conspired and carried out illicit acts, including misappropriation of funds and criminal breach of trust, between 2012 and 2017.

This is the largest bank fraud case the CBI has ever investigated.