The Central Bureau of Investigation on Saturday filed a cost sheet towards former ABG Shipyard Chairman Rishi Agarwal and 24 others for dishonest a consortium of 28 banks to the tune of ₹22,842 crore.
The company had launched an investigation after registering an FIR on February 7 on a grievance filed by the State Financial institution of India that the promoter and chairman Rishi Kamlesh Agarwal together with others akin to its former CFO Dhananjay Datar, Vice-President (Accounts) Praveen Bhandari and Assistant Vice-President (Accounts) Santhanam Muthuswamy, colluded to cheat a consortium of 28 banks led by the ICICI Financial institution, stated the CBI.
The CBI investigation has revealed that vast quantities have been allegedly transferred by the accused to their associated events and subsequently adjustment entries have been made to cowl up siphoning off financial institution loans. The company has additionally charged that vast investments have been made in ABG Shipyard’s abroad subsidiary by diverting the financial institution loans. Additionally, funds from banks have been allegedly diverted to buy large belongings within the identify of its associated events.
ABG Shipyard’s account turned Non-Performing Asset (NPA) on November 30, 2013, and the vast majority of mortgage disbursement allegedly occurred between 2005 and 2013, the CBI stated. The account was restructured beneath the company debt restructuring (CDR) mechanism on March 27, 2014, however operations of the corporate couldn’t be revived.
The company had additionally arrested its prime accused together with Rishi Kamlesh Agarwal in September to unearth cash laundering. A forensic audit in 2019 by Ernst and Younger revealed that the proof of ABG Shipyard’s fraud was dedicated between April 2012 and July 2017, by “diversion of funds, misappropriation, and felony breach of belief, with an goal to realize unlawfully at the price of the financial institution’s funds.”