The Central Bureau of Investigation on Wednesday 21 September 2022 arrested founder Chairman of ABG Shipyard Limited Rishi Agarwal in an on-going investigation of a case relating to an alleged loss of Rs. 22,842 Crore to State Bank of India and other Consortium Member banks.
The arrested accused will be produced before the Competent Court.
A case was registered on a complaint from State Bank of India, against ABG Shipyard and others including its CMD; Directors; another private company and unknown Public Servant(s) and Private Persons for causing an alleged loss of Rs.22,842 Crore to State Bank of India and other consortium member banks. It was alleged that the accused had cheated the consortium of 28 banks, including the branches of erstwhile State Bank of Patiala, Commercial Finance Branch, New Delhi, erstwhile State Bank of Travancore, Commercial Branch, New Delhi, and State Bank of India, Overseas Branch, Mumbai.
The consortium of 28 banks was led by ICICI Bank. The accused borrower company was engaged in the business of shipbuilding and ship repair. It was further alleged that the accused had colluded together and committed activities by way of diversion of funds for the purpose other than for which the funds were released by the bank. Huge amounts were allegedly transferred by the accused company to its related parties and subsequently adjustment entries were made. It was also alleged that bank loans to the company was diverted and huge investment was found to be made in its overseas subsidiary. It was further alleged that funds from banks were diverted to purchase huge assets in the name of its related parties.
The account of the accused company turned NPA on 30 November 2013. As per Bank Complaint, the NPA was to the tune of Rs. 22,842 crores and the majority of the disbursement happened between 2005 and 2013 by a consortium of 28 banks led by ICICI Bank including SBI. The account was restructured under CDR mechanism on 27 March 2014. However, the operations of the company could not be revived.
Searches were earlier conducted on 12 February 2022 at 13 locations in the premises of accused including his company, Directors at many places, including Surat, Bharuch, Mumbai, and Pune, which led to recovery of incriminating documents, including books of accounts of the accused borrower company, purchase / sales details, minutes of meetings of Board, Share registers, various contract files, etc.
Investigation is continuing.