 "Money laundering case: ED raids 26 places in link with ABG Shipyard")
synopsis
An official stated that the raids were carried out at the location of ABG Shipyard, its sister companies, and executives in Mumbai, Pune, Surat and other places.
The Enforcement Directorate conducted raids on Tuesday at nearly 26 locations associated with the ABG Shipyard Ltd, one of the largest private shipbuilding companies accused of defrauding a consortium of 28 banks to the tune of Rs 22,842 crore, following the people familiar with the development stated.
The official stated that the raids were carried out at the location of ABG Shipyard, its sister companies, and executives under the Prevention of Money Laundering Act in Mumbai, Pune, Surat and other places.
The ED reported a money laundering case in link with the matter in February based on a first information report filed by the Central Bureau of Investigation in a probe initiated around the same time.
Preliminary investigations have shown that large sums taken from banks may have been diverted within and outside India via over 100 shell companies.
The CBI accused ABG of defrauding a consortium of 28 banks led by ICICI Bank of Rs 22,842 crores, with ICICI having the highest exposure of Rs 7,089 crore, followed by IDBI Bank at Rs 3,639 crore, State Bank of India at Rs 2,925 crore, Bank of Baroda Rs 1,614 crore and Punjab National Bank Rs 1,244 crore.
In their respective cases, the CBI and ED have named ABG's former chairman and managing director Rishi Kamlesh Agrawal and other company directors.
The CBI, in its statement, stated in February that a majority of disbursements in ABG Shipyard's account occurred between 2005 and 2012, and the loan account became a non-performing asset (NPA) on November 30, 2013. Between 2004 and 2014, the Congress-led United Progressive Alliance (UPA) was in power.
On February 12, the CBI raided ABG's premises in various cities, and the CMD and Directors of ABG Shipyard were located in India.
In 2018, a forensic audit conducted by EY revealed that the accused persons conspired and committed illegal activities such as fund diversion, misappropriation, and criminal breach of trust between April 2012 and July 2017.
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