CBI arrests Rishi Agarwal of ABG Shipyard

Arrest pertains to alleged Rs 22,800 crore bank fraud

September 22, 2022 8:45 IST | India Infoline News Service

Rishi Agarwal, the founder and chairman of ABG Shipyard Limited, was detained by the CBI on Wednesday in connection with the Rs 22,842-crore bank fraud case.

The ABG Group's flagship company, ABG Shipyard, was charged in the case in February of this year.

According to officials, Agarwal and others have been charged with crimes under the Indian Penal Code (IPC) and the Prevention of Corruption Act, including criminal conspiracy, fraud, criminal breach of trust, and misuse of official position.

The case covers money that was collected and mishandled between 2012 and 2017. According to officials, this is the largest bank fraud case the CBI has ever investigated.

In February, the business and Agarwal, the former CMD, were charged. Along with Agarwal, the FIR also included the names of the then-Executive Director Santhanam Muthaswamy, Directors Ashwini Kumar, Sushil Kumar Agarwal, and Ravi Vimal Nevetia, as well as another business called ABG International Pvt Ltd.

The defendants in the case cooperated together between 2012 and 2017, according to the results of a forensic investigation by Ernst & Young, and participated in money laundering, misappropriation, and criminal breach of trust.

According to sources, up to 28 banks and financial organizations were the targets of the alleged scam. According to CBI's FIR, the money granted by these organizations was spent on things other than what it was intended for.

In July 2016 and 2019, respectively, the loan was deemed a non-performing asset and a fraud.

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