CBI issues Look Out Circulars against accused in Rs 22,000 Cr loan fraud case by ABG Shipyard Limited

Look out Circulars have been issued against the accused in the case of over 22 thousand crore rupees loan fraud by ABG Shipyard Limited.

CBI in a statement today said, the account of ABG Shipyard turned Non Performing Assets in 2013 as per State Bank of India.

As per bank complaint, the NPA is to the tune of 22 thousand 842 crore rupees and the majority of the disbursement took place between 2005 and 2012 by a consortium of 28 banks led by ICICI Bank and including SBI.

CBI said, the fraud is primarily on account of huge transfers by ABG Shipyard Limited 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. CBI said, between April 2019 and March 2020, several banks declared the account as fraud based on a forensic audit conducted in 2018. SBI made a complaint to CBI in 2020.