CBI files FIR against former MD of AGB Shipyards for cheating banks over ₹22,842 crore

The consortium of banks had initially registered a complaint on November 8, 2019, on which the CBI had investigated some clarifications on March 12, 2020.

In its largest bank fraud case, the CBI has arrested ABG Shipyard Ltd’s former Chairman and Managing Director Rishi Kamlesh Agarwal along with others for reportedly cheating a consortium of lenders led by State Bank of India of over ₹22,842 crore, officials announced on Saturday.

Besides Agarwal, the agency has also listed the then Executive Director Santhanam Muthaswamy, Directors Ashwini Kumar, Sushil Kumar Agarwal and Ravi Vimal Nevetia and another firm ABG International Pvt Ltd for alleged offences of a criminal affair, cheating, criminal breach of trust and abuse of official position under the IPC and the Prevention of Corruption Act, they announced.

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The bank had initially registered a complaint on November 8, 2019, on which the CBI had investigated some clarifications on March 12, 2020. The lender registered a fresh complaint in August that year. After “scrutinising” for over one and a half-year, the CBI operated on the complaint filing an FIR on February 7, 2022.

“The firm was sanctioned credit facilities from 28 banks and financial organizations with the SBI having disclosure of ₹2468.51 crore,” they said. The Forensic Audit has revealed that between 2012-17, the accused co-operated and committed illegal activities comprising of diversion of funds, misappropriation and criminal breach of trust, they asserted.

It is the largest bank fraud case registered by the Central Bureau of Investigation (CBI). Funds were utilized for purposes other than for which they were expelled by banks, it explained.