Biggest Bank Fraud: The biggest bank fraud ever in the country, 28 banks were duped of 22842 crores

ABG Shipyard is being liquidated under insolvency. Due to no buyer being found, approval was given to sell its assets in private. Only 1480 crores have been invested in the value of the asset private.

28 banks were duped of about 23 thousand crores.

Last week the country’s biggest bank fraud (Bank Fraud) case has come to the fore. Gujarat based ABG Shipyard 22842 crores defrauded 28 banks. All kinds of things are happening about this fraud. Meanwhile, on Sunday, State Bank of India (State Bank of IndiaIt was said on behalf of the company that there has been no lapse in registering the complaint against the company. Recently, the CBI has registered a case against many people including Rishi Kamlesh Agarwal, former chairman and managing director of the company. Explain that the leader of the consortium of 28 banks was ICICI Bank. The second lead was IDBI Bank, but the complaint was lodged by SBI. State Bank had filed a complaint against the company in the CBI for the first time in November 2019.

ABG Shipyard was established on 15th March 1985. According to the statement issued by State Bank, since 2001 this company was under banking arrangement. The company’s account became NPA on 30 November 2013 due to poor performance. After that all efforts were made to bring the company’s functioning on track, but it could not be successful. In March 2014, the account was restructured by the consortium of banks. This was the period when the shipping industry was going through its bad times. This is the reason that despite all the efforts, the work of the company did not return on track. In July 2016, the account of ABG Shipyard was declared as NPA in the back date (November 2013).

State Bank had first complained in 2018

After coming to the fore of this fraud, the Congress has become an attacker on the Modi government. Congress spokesperson Randeep Surjewala said that the State Bank complained to the CBI in November 2018 that a large-scale fraud was being done on behalf of ABG Shipyard. In such a situation, criminal action should be taken against the company. Despite the complaint, the CBI did not take action and that file was sent back to SBI. The Congress had raised this matter in February 2018 itself, but the government did not pay attention to it.

Consortium leader ICICI Bank but why the complaint from SBI?

Surjewala said some important things regarding the timeline regarding this fraud. ABG Shipyard’s account was declared NPA in November 2013. After that, all efforts were made to improve the functioning of the company, but the company did not return on track. The leader of this consortium was ICICI Bank, the second lead was IDBI Bank but State Bank of India was chosen to file the complaint. State Bank first complained in November 2019 but the CBI did not pay heed to it. The second complaint was made in December 2020 after which action has been taken.

ABG Shipyard’s account is currently in the phase of liquidation

The account of ABG Shipyard is currently in liquidation phase under the process of NCLT. It has been clearly stated in the forensic report that between 2012 and 2017 the work of robbing banks was done in different ways on behalf of the company. Funds were diverted. The company embezzled bank money and there was criminal breach of trust.

1480 crores only by selling the assets of the company

Let us inform that in 2017 the Reserve Bank of India had nominated 12 accounts for insolvency process. ABG Shipyard is one of these twelve companies. However, no one was found to buy this company, due to which most of the money of the banks was lost. According to a report in Economic Times in December 2020, four important efforts were made regarding liquidation, but due to lack of buyers, the recovery of banks is not being done. Later, the liquidator allowed the sale of its assets to the private sector. The average value of its assets in private was worked out to be Rs 1480 crore.

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