Vijay Mallya-Nirav Modi left behind, this shipyard company did the biggest bank scam, know the whole matter

Till now the names of Vijay Mallya and Nirav Modi were running at the top in the case of bank fraud. The entire focus of the government was also on these two, but in the meantime a new scam came to the fore and left Mallya-Modi somewhere behind. Yes, we are talking about the scam done by ABG Shipyard Company. This bank fraud is about 23 thousand crores i.e. Vijay Mallya 9 thousand crores and Nirav Modi 14 thousand crores, equal to the total fraud of both. Let's know everything about the biggest bank fraud ever.

Country's biggest bank fraud

The biggest bank fraud in the history of the country has come to the fore. Which is equal to the total fraud of Vijay Mallya and Nirav Modi who have been declared fugitives. Surat based company ABG Shipyard has committed this big scam of Rs 22,842 crore. After this came to the fore, where the countrymen were very surprised, while the opposition has also got a big issue to surround the central government. Taking action in this matter, the CBI has registered a case against eight people including Rishi Kamlesh Agarwal, former chairman and managing director of the company. According to the report, ABG Shipyard Limited had taken a total loan of Rs 28,842 crore between 2012 and 2017 in the name of business from 28 different banks of the country.

Case registered against these people

It is worth noting that in this biggest bank fraud of the country, the central agency has against Rishi Kamlesh Agarwal, the then executive director of ABG Shipyard Santhanam Muthaswamy, directors - Ashwini Kumar, Sushil Kumar Agarwal and Ravi Vimal Nevetia and another company ABG International Pvt Ltd. He was also booked for offenses such as alleged criminal conspiracy, cheating, criminal breach of trust and official abuse. According to the report, these people have been booked under the Indian Penal Code and the Prevention of Corruption Act. According to the CBI FIR, the names of the two major companies involved in the scam are ABG Shipyard and ABG International Pvt Ltd. Both the companies belong to the same group.

Money used here

According to the report released in this regard, the companies are alleged to have bought properties worth billions of rupees by sending money received through bank fraud abroad. An examination of the forensic audit report from April 2012 to July 2017 filed by Ernst & Young LP on January 18, 2019, has revealed that the company through illegal activities misappropriated bank loans and diverted funds. According to this, the former MD of the company Rishi Kamlesh Agarwal has already fled the country and is currently residing in Singapore, quoting sources. Let us inform that this huge loan amount of banks was declared NPA in July 2016.

Complaint for the first time in the year 2019

For the first time in the case of this biggest bank fraud in the country, the complaint was lodged in the year 2019. According to the report, on 8 November 2019, representatives of 28 banks had filed a complaint against ABG Shipyard for the first time in the CBI regarding this big scam. In 2020, the CBI sought some clarity regarding this complaint, after which in August 2020, the banks again sent the revised complaint to the CBI. After investigating the case for one and a half years, finally the CBI registered the FIR on 7th February 2022. In this case, raids were conducted at 13 locations of the company including Surat, Mumbai and Pune. After which the biggest scam came in front of the country, which also left behind Vijay Mallya and Nariv Modi.

How much does the company owe to the major banks?

Bank Name	Due
ICICI	7,089 Crore Rupees
IDBI	3,634  Crore Rupees
State Bank of India	2,468.Crore Rupees
Bank of Baroda	1,614 Crore Rupees
PNB	1244 Crore Rupees
IOB	1,228 Crore Rupees

What is the business of the company?

Let us tell you that ABG Shipyard Limited was started in the year 1985. This shipyard company of ABG Group in Dahej and Surat in Gujarat is engaged in the construction and repair of water vessels. So far this company has built 165 ships. By 1991, this company got huge orders from home and abroad, earning huge profits. According to the report, in 2016, the company suffered a huge loss of more than $550 million and after that its condition worsened. Citing its financial condition, the company took loans from banks and carried out this biggest scam. SBI also explained why it filed a case on behalf of the consortium of banks. In fact, ICICI and IDBI Bank were the first and second leading lenders in the consortium. However, among the public sector banks, SBI was the largest lender. Therefore it was decided that SBI will file a complaint with the CBI.

What is State Bank statement?

State Bank said in this case that more than 2 dozen lenders led by ICICI Bank had given money. The account had turned into a non-performing asset (NPA) due to the company's poor performance. Several attempts were made to recover the company's operations but all failed. SBI stated that the account restructuring under Company Debt Restructuring (CDR) was done by all the lenders in March 2014. The shipping industry was going through a recession, so the company's operations could not be revived. The account was classified as NPA in November 2013 to July 2016 as the restructuring failed. Ernst & Young (E&Y) was appointed as the forensic auditor by the lenders in April 2018. The fraud was mainly of diversion of funds, misappropriation and criminal breach of trust.

Big issue in the hands of the opposition

Congress National General Secretary and media in-charge Randeep Singh Surjewala has fiercely attacked the BJP government regarding the scam of more than 22 thousand crores by ABG Shipyard Company. Surjewala alleged that the government is working on the strategy of looting public money, then running away. Under this, scams are happening continuously and the accused are fleeing abroad after leaving the country. After Vijay Mallya and Nirav Modi, another name has joined this list. Congress MP Rahul Gandhi has targeted PM Narendra Modi by tweeting. He wrote, during the Modi era, banks worth Rs 5,35,000 crore have been fraudulent. Such rigging of public money has never happened in 75 years. These days of loot and deceit are good days only for friends of Modi.

BJP retaliated like this

On the one hand, Congress's Surjewala said, "India's biggest bank fraud by ABG Shipyard and its promoters clearly shows the complicity, nexus and complicity of those in power at the top of the Modi government." Surjewala raised the question, after the insolvency process started, why did the Modi government take 5 years to register the FIR? Countering the allegations of Congress, party spokesperson Syed Zafar Islam said that the loan to ABG Shipyard was given in the UPA government while the Modi government caught this theft. He said that Congress's attack on the government is like a thief blaming the police for the crime. All the money was given before the Modi government came in 2014 and the NPAs were also done before the Modi government was formed.