Gujarat-based ship-building firm ABG Shipyard Ltd's (ABGSL) directors and promoters are in the eye of the storm after the Central Bureau Investigation (CBI) has booked them for purportedly causing a loss of Rs 22,842 crore to a consortium of banks between 2012-2017.
The CBI, on Tuesday, said in a statement that it has issued lookout notices against the accused in the case. The Look Out Circulars (LOCs) have been issued to prevent them from leaving India.
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ABG Shipyard Fraud: Key players
The CBI has booked ABG Shipyard Ltd and its then chairman and managing director Rishi Kamlesh Agarwal, along with others, for allegedly cheating a consortium of banks of over Rs 22,842 crore.
The agency has also named the then executive director Santhanam Muthaswamy, directors Ashwini Kumar, Sushil Kumar Agarwal and Ravi Vimal Nevetia, along with another company, ABG International Pvt Ltd, for alleged offences of criminal conspiracy, cheating, criminal breach of trust and abuse of official position under the Indian Penal Code (IPC) and the Prevention of Corruption Act, CBI said.
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"The fraud is primarily on account of a huge transfer by M/s ABG Shipyard Ltd to its related parties and subsequently making adjustment entries. It is also alleged that huge investments were made in its overseas subsidiary by diverting bank loans. The critical period of the investigation is 2005-2012," the CBI said in a press release on Tuesday.
In continuation of the investigation, the central agency conducted searches at 13 locations on February 12.
Officials claimed they had received several incriminating documents, such as books of accounts of the accused borrower company, which is being scrutinised.
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