ABG Shipyard fraud case: CBI issues look out notices against former CMD, 8 others

Feb 15, 2022

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NEW DELHI: Days after the Central Bureau of Investigation (CBI) booked ABG Shipyard, its former chairman and managing director Rishi Kamlesh Agarwal and others for allegedly dishonest a consortium of two dozen lenders led by ICICI Financial institution, the company on Tuesday issued a glance out discover towards them.
In a press release, the CBI mentioned Look Out Circulars (LOCs) have already been opened towards the accused, whereas sustaining that the accused have been situated in India, information company PTI reported.
The primary goal behind issuing the LOC is to stop the accused from leaving the nation.
That is in all probability the largest financial institution fraud case to have been reported — involving greater than Rs 22,842 crore.
It’s positively greater than the one perpetrated by Nirav Modi and his uncle Mehul Choksi, who allegedly cheated the Punjab Nationwide Financial institution (PNB) of round Rs 14,000 crore by means of issuance of fraudulent Letters of Enterprise (LoUs).
CBI has additionally named the then government director Santhanam Muthaswamy, administrators Ashwini Kumar, Sushil Kumar Agarwal and Ravi Vimal Nevetia and one other firm ABG Worldwide Pvt Ltd for alleged offences of legal conspiracy, dishonest, legal breach of belief and abuse of official place below the Indian Penal Code (IPC) and the Prevention of Corruption Act.
On February 12, the company had performed searches at 13 areas. Officers claimed they’d acquired a number of incriminating paperwork, equivalent to books of accounts of the accused borrower firm, which was being scrutinised.
The State Financial institution of India (SBI) had additionally opened LOC towards the primary accused in 2019.
It had first filed a grievance on November 8, 2019 on which the central investigation company had sought some clarifications on March 12, 2020.
The financial institution filed a recent grievance in August that 12 months. After “scrutinising” for over one- and-a-half-years, the CBI acted on the grievance, submitting an FIR on February 7, 2022.
The corporate was sanctioned credit score services from 28 banks and monetary establishments led by ICICI Financial institution, with the SBI, having publicity of Rs 2,468.51 crore, the CBI mentioned.
The mortgage account was declared as A non-performing asset (NPA) in July, 2016 and a fraud in 2019.
(With inputs from PTI)



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