Indian Shipyard ABG Named In Biggest Money Scam After Vijay Mallya
Gujarat based ABG Shipyard have been caught in a huge scam that is being said to have gone to proportions bigger than that of Vijaya Mallya. The shipyard is known to have siphoned and misused as much as Rs. 22,000 crores.
Other major Indian frauds like that of Nirav Modi and Mehul Choksi have been seen as ripples in the water in comparison to this one fraud. The man of the moment is Rishi Kamlesh Agarwal. He has now been accused by the Central Bureau of Investigation (CBI) for misappropriation, criminal breach of trust and inappropriately diverting funds too.
It has come to light that a consortium of 28 banks had lent money to the shipyard. This included both public and private sector banks in India. Sadly, the loans had already turned to non-performing assets in November 2013. All attempts to pay back failed and a large-scale investigation has now shown huge amounts being diverted and misrepresented as well.
On repeated requests from the banks like SBI, CBI opened an investigation. It had taken that much extra time to create a case because such high-value crimes do take time to assemble data and evidence.
The worst-hit is ICICI Bank with over Rs. 7000 crore has bad debts, followed by IDBI Bank and then SBI Bank each taking a hit of Rs. 3000 crore each approximately, Bank of Baroda, IDB and LIC including others at Rs. 4000 crores and more counting. Apart from Agarwal, Santhanam Muthuswamy, Ashwini Kumar, Sushil Kumar Agarwal, and Ravi Vimal Nevetia have also been named in the case. The lenders even found it difficult to find any kind of buyers of the shipyard. So, its money literally gone down the drain as of now. Four attempts to recover money through public auctions have also failed.