JNS: CBI has issued look-out circulars (LoC) against the alleged perpetrators of the over Rs 22,000 crore bank loan fraud perpetrated by ABG Shipyard Ltd., a Gujarat based ship-building company.
During the investigations CBI also found that the company allegedly diverted funds using as many as 98 related entities. Look-out notices (LoC) have been issued against them, source said.
The account of ABG Shipyard turned Non Performing Assets in 2013 as per State Bank of India. As per bank complaint, the NPA is to the tune of 22 thousand 842 crore rupees and the majority of the disbursement took place between 2005 and 2012 by a consortium of 28 banks led by ICICI Bank and including SBI, it said in a statement issued by CBI.
“The fraud is primarily on account of huge transfers by ABG Shipyard Limited to its related parties and subsequently making adjustment entries,” it said.
It is also alleged that huge investments were made in its overseas subsidiary by diverting bank loans. CBI said, between April 2019 and March 2020, several banks declared the account as fraud based on a forensic audit conducted in 2018. SBI made a complaint to CBI in 2020.
