Rishi Agarwal, Chairman of ABG Shipyard that is at the centre of the biggest bank fraud of Rs 22,842 crore, has been questioned by the Central Bureau of Investigation. He is likely to be called again for further questioning in connection with the case, sources told India Today.
CBI and Enforcement Directorate have accused Agarwal and other accused of colluding and committing illegal activities such as diversion of funds, misappropriation and criminal breach of trust and misusing bank’s money for purposes other than for what the funds were released.
Agarwal, a resident of Mumbai, has been booked by the CBI and ED for crafting India’s biggest bank fraud and cheating a consortium of banks led by ICICI Bank and State Bank of India (SBI).
Besides Agarwal, executive director Santhanam Muthaswamy, directors Ashwini Kumar, Sushil Kumar Agarwal and Ravi Vimal Nevetia and company ABG International Pvt Ltd have also been listed as accused in the case.
The investigating agency also conducted searches at Agarwal’s South Mumbai residence and seized crucial documents. It said that the fraud primarily comprises huge transfers by ABG Shipyard to related parties and subsequent adjustments in entries. The company has also been accused of making huge investments to its overseas subsidiary by diverting bank loans. The CBI said that the critical period of the fraud was from 2005 to 2012.
Incorporated on March 15, 1985, ABG Shipyard is engaged in the business of shipbuilding and ship repair. Their shipyards are located at Dahej and Surat in Gujarat. According to the federal probe agency, the account of ABG Shipyard turned into non-performing assets (NPA) on November 30, 2013.
(With inputs from Munish Pandey)
Also read: CBI on how the ABG Shipyard fraud unfolded
Also read: ABG Shipyard: How it plunged into debt and defrauded 28 banks of Rs 22,842 cr