ED files money laundering case against ABG Shipyard in almost Rs 23,000 crore bank loan fraud

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ED files money laundering case against ABG Shipyard in almost Rs 23,000 crore bank loan fraud

Strong points

  • ED filed a money laundering complaint against the ABG shipyard.
  • The case was filed in relation to the bank loan fraud of Rs 23,000 crore.

The Enforcement Branch on Wednesday filed a money laundering case against ABG Shipyard in the money laundering case involving bank fraud of Rs. 22,842 crores. ED initiated a money laundering investigation based on an FIR registered by the Central Bureau of Investigation (CBI). The CBI on Tuesday issued lookouts for Rishi Kamlesh Agarwal, the former chairman and chief executive of ABG Shipyard, and eight others.

The ED has provisionally seized immovable property in the case of Ramsarup Lohh Udyog Ltd in the form of land measuring 354.25 acres under the Prevention of Money Laundering Act 2002 (PMLA) in a case Coal Block. During the investigation, it was revealed that Ramsarup Lohh Udyog Ltd was awarded Moira Madhujore of the North and South Coal Block for captive mining in the state of West Bengal with 5 joint assignees.

The book value is Rs 5.29 Crore and the current market value of the said property is estimated at Rs. 445.59 crore.

On Tuesday, the CBI had also named then-executive director Santhanam Muthaswamy, directors Ashwini Kumar, Sushil Kumar Agarwal and Ravi Vimal Nevetia, and fellow company ABG International Pvt Ltd for alleged offenses of criminal conspiracy, cheating, of criminal breach of trust and abuse of official position under the Indian Penal Code (IPC) and the Prevention of Corruption Act, they said.

As a follow-up to the investigation, the CBI conducted searches at 13 locations on February 12. Officials said they had received several incriminating documents, such as the books of the accused borrowing company, which were under review.

The bank had filed a first complaint on November 8, 2019, on which the central investigation agency had requested clarification on March 12, 2020. The bank filed a new complaint in August of the same year. After “examining” for more than a year and a half, the CBI responded to the complaint by filing an FIR on February 7, 2022.

Also Read: Surveillance Circulars Issued Against ABG Shipyard Administrators in Almost Rs 23,000 Crore Fraud Case

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