Biggest bank fraud in the country exposed
| Editorial comment
New Delhi – In one of the biggest bank fraud cases registered by the Central Bureau of Investigation (CBI), the agency has charged ABG Shipyard Ltd, with defrauding a consortium of 28 banks of over Rs 22,842 crore. This fraud has happened from April 2012 to July 2017. Crimes are being registered against the ABG Shipyard and the then three Directors namely Rishi Agarwal, Santhanam Muthaswamy, Ashwini Agarwal. ABG Shipyard happens to be the main company among the ABG Group.
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1. The fraud was exposed when the State Bank of India (SBI) complained. The company borrowed 2,925 crores from SBI, 7,089 crores from ICICI, 3,634 crores from IDBI, 1,614 crores from Bank of Baroda, 1,244 crores from PNB, 1,228 crores from IOB as loans.
2. The 1st complaint was made on 8th November 2019. Thereafter, CBI had asked for an explanation on 12 March 2020. In that same year, an inquiry was held after having registered the crime in August. After having verified various evidence for one and a half years, the CBI has registered crime against the Directors. In the investigation, a criminal breach of trust was revealed whereby the amount was not used for the purpose for which it was borrowed from the bank but was being used for some other purpose.