SBI Issued Press Release on ABG Shipyard Biggest Bank Scam in The History Of India
Sushmita Goswami | Feb 14, 2022 |
SBI Issued Press Release on ABG Shipyard Biggest Bank Scam in The History Of India
ABG Shipyard was founded on March 15, 1985, and has been in operation since 2001. A consortium of almost two dozen lenders financed the project. ICICI Bank was the Consortium’s leader. On November 30, 2013, the account was demoted to NP A due to poor performance. Several attempts to resurrect the company’s operations were unsuccessful.
In March 2014, all lenders restructured the account using the CDR process. However, because the shipping sector was experiencing one of the greatest downturns in history, the company’s operations were unable to recover.
Due to the failure of the restructuring, the account was reclassified as NP A in July 2016, with retroactive effect from November 30, 2013. Lenders appointed E&Y as forensic auditors in April 2018, and the firm presented its report in January 2019. In 2019, the E&Y report was presented to the Fraud Identification Committee of 18 Lenders. Diversion of funds, misappropriation, and criminal breach of trust are the most common types of fraud.
Despite the fact that ICICI Bank was the consortium’s lead lender and IDBI was the second, it was desired that SBI, as the largest PSB lender, file the complaint with the CBI. The first complaint was lodged with the CBI in November of this year. The CBI and the banks were in constant contact, and more information was being transferred.
The fraud’s circumstances, as well as CBI requirements, were discussed further at several Joint Lenders meetings, and a new and complete second complaint was filed in December 2020. A NCLT-driven method is currently being used to liquidate the account.
A fraud is proclaimed based on the results of the forensic audit report, which are thoroughly reviewed in joint lender meetings. When a fraud is reported, it is common to file an initial complaint with the CBI, and additional information is acquired based on their inquiries. When significant additional material is acquired, a second complaint with full and comprehensive data is filed, which serves as the foundation for the FIR. There was no attempt to stall the process at any point. In all such cases, the lenders forum diligently follows up with CBI.
Press release about ABG Shipyard issue. @DFS_India @FinMinIndia
Our statement -: pic.twitter.com/RP71DBhePD
— State Bank of India (@TheOfficialSBI) February 13, 2022
To Read Official Press Release Download PDF Given Below:
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