Biggest Bank fraud: 28 banks defrauded by ABG shipyard Rs. 22 lakh crore involved
In this biggest Bank fraud , 28 banks were defrauded by M/sABG Shipyard, a private shipyard. The fraud involved a whopping Rs. 22 lakh crore and that too in a span of two years by a bunch of bank’s employee.
ABG Shipyard conned 28 banks in the country of about Rs.22 lakh crores, with eight people detained so far. After four years, another major fraud in the country’s financial industry has surfaced. Not one, but over two dozen banks have been cheated by ABG Group (ABG Shipyard). The amount is so huge that it has surpassed all prior records for financial fraud.
In this case, eight persons have been detained thus far. The CBI has began the inquiry by filing a complaint, and additional authorities may join the probe in the near future.
The largest bank fraud in history, totaling Rs.22842 crores.
ABG Bank Fraud Case: The CBI has filed a FIR against eight persons in connection with the Rs.22,842 crore ABG Shipyard scandal. A total of 28 banks have been scammed by this firm. The State Bank of India has now come out about the largest financial fraud in history. The loan was issued through a consortium of more than two dozen lenders led by ICICI Bank, according to SBI. Due to low performance, the account became non-performing in November 2013. Many attempts were made to resurrect the corporation, but none were successful.
In the country’s biggest bank fraud case, the CBI has filed a case against ABG Shipyard Limited and its then-CEO Rishi Kamlesh Agarwal, among others. The case was filed on Saturday in connection with an alleged theft of over Rs 22,842 crore from a consortium of banks led by State Bank of India, according to officials.
According to the CBI, this fraud was perpetrated on a group of institutions rather than on a single bank. SBI, Bank of Baroda, Bank of India, IDBI, Punjab National Bank, and private bank ICICI, as well as the Life Insurance Corporation of India, have all been robbed.
Fraud Amount in Crores:
SBI – Rs.2,468.51
ICICI bank – Rs. 7,089
IDBI – Rs.3,634
Bank of Baroda- Rs. 1,614
PNB – Rs.1,244
IOB-Rs.1,228
and others
On August 25, 2020, a Deputy General Manager of SBI submitted a formal complaint with the CBI, revealing the scam for the first time.
Two businesses are planning to defraud each other.
28 banks and the LIC are being defrauded by two firms. They do, however, belong to the same group. The firms’ names are ABG Shipyard and ABG International Private Limited.
This business from Surat, Gujarat, also conducts additional work connected to the building and maintenance of water boats, according to the CBI.
The FIR also includes the identities of ABG Group managing director RK Agarwal, executive directors, other directors, and a number of government officials. These people have been charged with serious crimes including stealing government property (criminal conspiracy, fraud, Prevention of Corruption Act). The sentence can be up to life in prison if the charge is substantiated under the sections under which the case was filed..
Santhanam Muthaswamy, Ashwini Kumar, Sushil Kumar Agarwal, and Ravi Vimal Nevetia, as well as ABG International Pvt Ltd, have been charged with criminal conspiracy, deceiving, criminal breach of trust, and official misappropriation. For this, a lawsuit was brought. He said that the Indian Penal Code and the Prevention of Corruption Act had been used to prosecute these people.
ABG What are the company’s alleged wrongdoings?
A consortium of banks provided ABG with loans and different credit facilities.
Money obtained from banks was also sent abroad via connected companies.
Bank loans were used to purchase property and stock in other countries.
Money was sent from one firm to another while according to the regulations.
According to reports, ABG has sold its ships overseas, but the corporation has scammed the group of banks out of hundreds of crores by breaking all of the norms and regulations.
On November 8, 2019, the bank’s consortium filed a complaint, and on March 12, 2020, the CBI demanded explanations. In August of that year, the bank consortium filed a fresh complaint, which the CBI responded to after more than a year and a half of investigation. The company obtained loans of Rs. 2468.51 crore from SBI and 28 other banks and financial institutions, according to the official.
According to the FIR, the ABG firm caused SBI to lose Rs. 2468 crore, while the LIC was scammed of Rs.136 crores. The consortium of banks has been defrauded of a total of Rs.22842 crores. From 2012 until 2017, this fraud was perpetrated. That is, from the Manmohan Singh government to the Modi government.
The accused reportedly conspired and carried out illegal activities, including theft of cash and criminal breach of trust, between 2012 and 2017, according to the forensic audit. To date, this is the CBI’s greatest bank fraud case.
After filing a case in this matter, the CBI raided 13 locations. Many damning papers were discovered throughout the investigation. According to CBI sources, the inquiry into the issue might reach top bank executives. Many leaders’ identities are anticipated to surface as the probe develops.
Edited and published by Ashlyn Joy
