ABG Shipyard bank fraud: CBI files chargesheet against ex-CMD Rishi Agarwal & 24 others

The Central Bureau of Investigation (CBI) on Saturday filed chargesheeted against former Chairman and Managing Director of Surat-based ABG Shipyard Rishi Kamlesh Agarwal and others for allegedly cheating a consortium of banks led by ICICI Bank of over Rs 22,842 crore.

The chargesheet has been filed against 25 accused including a Mumbai-based ABG Shipyard; its chairman and promoter; then chief financial officer; then vice president (accounts); then assistant vice president (accounts);  another person handling the group's offshore entities; then statutory auditor of the company and 18 other entities (India-based companies/firms and offshore entities).

The central agency has till now detected an alleged diversion of Rs 5,000 crore and has kept the investigation open. Some luxury properties belonging to Agarwal have also been seized by CBI.

The company allegedly duped a consortium of 28 banks over Rs 22,842 crore. The Enforcement Directorate has been investigating the case since February based on an FIR filed by the CBI against the former promoters of the shipbuilding firm.

What does the CBI FIR allege?

In the First Information Report, CBI has named CMD and others that include names of executive director Santhanam Muthaswamy, directors Sushil Kumar Agrawal, Ashwini Kumar, and Ravi Vimal Nevetia, and another firm ABG International Pvt Ltd for alleged offences of criminal conspiracy, criminal breach of trust, cheating and abuse of official position under the Indian Penal Code (IPC) and the Prevention of Corruption Act. CMD Agarwal was arrested on September 21.

The FIR was registered on February 7, 2022, on the complaint filed by the bank. ABG Shipyard was sanctioned credit facilities from 28 banks and financial institutions led by ICICI Bank with State Bank of India having exposure of Rs 2,468.51 crore.

The company purportedly transferred the huge amounts to its related parties and subsequently adjustment entries were made.

(With agency inputs)