CBI finds India’s biggest bank fraud of Rs 22,842 cr, books ABG Shipyard and its directors

CBI finds India's biggest bank fraud of Rs 22,842 cr, books ABG Shipyard and its directors
  • Central Bureau of Investigation (CBI) has booked ABG Shipyard for an alleged Rs 22,842-crore financial fraud. ABG Shipyard is the flagship entity of ABG Group. 
  • It has cheated a consortium of 28 banks and financial institutions of Rs. 22,842 crore. This consortium was led by ICICI Bank. Of this, ABG Shipyard owes Rs. 7,089 crore to ICICI Bank, Rs. 3,639 crore to IDBI Bank, Rs. 2,925 crore to State Bank, Rs. 1,614 crore to Bank of Baroda, and Rs. 1,244 crore to Punjab National Bank, among others.
  • This is the biggest bank fraud case ever registered by the CBI. The case pertained to funds gotten and misused during the 2012-17 period. Rishi Agarwal, the then CMD of ABG Shipyard has been named in the FIR.
  • The Funds given by these banks were used by the executives of ABG Shipyard for purposes other than for which they were given and they were engaged in diversion of funds, misappropriation and criminal breach of trust. The same has been revealed in a report submitted by M/s. Ernst & Young LP.

Points to remember:

  1. Recently CBI has unveiled the largest bank fraud by which company?- ABG Shipyard
  2. The ABG Shipyard fraud case involved a consortium of how many banks?- 28 banks of which ICICI bank has the highest loan amount.
  3. Then CMD of ABG Shipyard during 2012-17?- Rishi Agarwal,

Source: Economic times

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