English EditionEnglish Editionहिन्दीગુજરાતીमराठीবাংলাಕನ್ನಡമലയാളംதமிழ்తెలుగు
Subscribe
Sign In
Market Savvy Offer is Live
Business News›Industry›Transportation›Shipping / Transport›India's biggest bank fraud case: How ABG Shipyard steered the scam ship to divert funds
The Economic Times daily newspaper is available online now.
Read Today's Paper
SECTIONS
India's biggest bank fraud case: How ABG Shipyard steered the scam ship to divert funds
By
Raghav Ohri
, ET Bureau
Synopsis
ABG Shipyard Ltd, accused in India's biggest bank fraud case, created 27 "paper companies" and used 38 Singapore-based group entities to divert funds borrowed from ICICI Bank-led lenders. The Enforcement Directorate's chargesheet reveals that the diverted funds were transferred to Singapore and invested in tax havens. The paper companies were created solely for the purpose of facilitating circular transactions.
AgenciesRelated
- Religare Finvest funds diverted to UK tax haven Jersey, says Enforcement Directorate
- Bhushan Steel bank 'fraud' case: ED arrests five persons including former executives
- CBI-ED-NIA team to make a UK trip in bid to expedite Vijay Mallya, Nirav Modi's extradition
ABG Shipyard Ltd, the Gujarat-based shipbuilder accused in India's biggest bank fraud case, created 27 "paper companies" and used 38 Singapore-based group entities to divert the money borrowed from a consortium of lenders led by the ICICI Bank, the Enforcement Directorate said in its chargesheet filed recently in a Gujarat court.
'Move led to cancellation of shipbuilding contracts'
In its court documents, the federal agency that probed the money laundering aspect of the ₹22,842 crore alleged scam said part of the funds was transferred to Singapore and utilised for investments in mutual funds in tax havens. It said that the paper companies were floated only to "facilitate circular transactions" of the misappropriated funds.
The central agency alleged that ABG Shipyard's founder-chairman, Rishi Agarwal, was "keenly involved" in the diversion and misappropriation of funds. Diversion of funds led to delays in and cancellation of shipbuilding contracts the company had secured, including from the Indian Navy for three training ships for naval cadets, it said.
According to the ED, ABG Shipyard received an advance payment of ₹75 crore from the Navy, but "Agarwal diverted the funds through some paper concerns/namesake entities and did not complete the order".
Artificial Intelligence(AI)
Java Programming with ChatGPT: Learn using Generative AI
By - Metla Sudha Sekhar, Developer and Lead Instructor
Artificial Intelligence(AI)
Basics of Generative AI : Unveiling Tomorrow's Innovations
By - Metla Sudha Sekhar, Developer and Lead Instructor
Artificial Intelligence(AI)
Generative AI for Dynamic Java Web Applications with ChatGPT
By - Metla Sudha Sekhar, Developer and Lead Instructor
Artificial Intelligence(AI)
Mastering C++ Fundamentals with Generative AI: A Hands-On
By - Metla Sudha Sekhar, Developer and Lead Instructor
Artificial Intelligence(AI)
Master in Python Language Quickly Using the ChatGPT Open AI
By - Metla Sudha Sekhar, Developer and Lead Instructor
Office Productivity
Zero to Hero in Microsoft Excel: Complete Excel guide 2024
By - Metla Sudha Sekhar, Developer and Lead Instructor
Astrology
Vastu Shastra Course
By - Sachenkumar Rai, Vastu Shashtri
Data Science
SQL for Data Science along with Data Analytics and Data Visualization
By - Metla Sudha Sekhar, Developer and Lead Instructor
Web Development
A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024
By - Metla Sudha Sekhar, Developer and Lead Instructor
Office Productivity
Mastering Microsoft Office: Word, Excel, PowerPoint, and 365
By - Metla Sudha Sekhar, Developer and Lead Instructor
Marketing
Digital marketing - Wordpress Website Development
By - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expert
Web Development
Mastering Full Stack Development: From Frontend to Backend Excellence
By - Metla Sudha Sekhar, Developer and Lead Instructor
Finance
Financial Literacy - TDS, Budget, Income Tax Act, GST, Indirect tax
By - CA Rahul Gupta, CA with 10+ years of domain experience, trainer
Leadership
Business Storytelling Masterclass
By - Ameen Haque, Founder of Storywallahs
Future of Marketing & Branding Masterclass
By - Dr. David Aaker, Professor at Haas School of Business
HR & People Management
Human Potential and the Future of Employment
By - Lynda Gratton, Co-chair of the World Economic Forum Council on Work, Wages and Job Creation, Professor of Management Practice
Strategy
ESG and Business Sustainability Strategy
By - Vipul Arora, Partner, ESG & Climate Solutions at Sattva Consulting Author I Speaker I Thought Leader
Finance
Financial Reporting and Analytics
By - Dr. C.P. Gupta, Professor: Department of Finance and Business Economics, University of Delhi
Marketing
Performance Marketing for eCommerce Brands
By - Zafer Mukeri, Founder- Inara Marketers
MORE STORIES FOR YOU✕
« Back to recommendation stories
I don't want to see these stories because
SUBMIT
The chargesheet, a copy of which ET has seen, names Agarwal and 37 others as accused. It accuses them of having used the proceeds of crime to also acquire immovable properties, after diverting and layering the money through subsidiary companies and claiming it to be untainted.
Agarwal has denied allegations of financial irregularities against him.
Manipulating books
ED's chargesheet states that the consortium of 28 lenders had given loans to ABG Shipyard to meet its working capital requirements and other business expenses.
However, the Enforcement Directorate claimed, its probe revealed that the company, "in collusion with its promoters/directors and other associate entities, hatched a criminal conspiracy" with an "intention to cheat and defraud the consortium of banks", and utilised the funds for purposes other than those stated in the loan agreements.
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News on
abg shipyardagarwalrishi agarwalindian navyenforcement directorateabg shipyard ltdindiaicici bank
(Catch all the Business News, Breaking News, Budget 2024 Events and Latest News Updates on The Economic Times.)
Subscribe to The Economic Times Prime and read the ET ePaper online.
...moreless
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News on
abg shipyardagarwalrishi agarwalindian navyenforcement directorateabg shipyard ltdindiaicici bank
(Catch all the Business News, Breaking News, Budget 2024 Events and Latest News Updates on The Economic Times.)
Subscribe to The Economic Times Prime and read the ET ePaper online.
...moreless
Continue reading with one of these options:
Limited Access
Free
Login to get access to some exclusive stories
& personalised newsletters
Login Now
Unlimited Access
Starting @ Rs120/month
Get access to exclusive stories, expert opinions &
in-depth stock reports
Subscribe Now
ET
Uh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Prime Account Detected!
It seems like you're already an ETPrime member with
Login using your ET Prime credentials to enjoy all member benefits
Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
To read full story, subscribe to ET Prime
Get Unlimited Access to The Economic Times
₹34 per week
Billed annually at ₹2499 ₹1749
Already a Member? Sign In now
Already a Member? Sign In now
Unlock this story and enjoy all members-only benefits.
'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '
' + h3 + '
' + h4 + '
- ' + listing + '
'; $('#paidSCWidget').html(html); var callback = $('#paidSCWidget').attr('data-callback'); if(callback && window[callback]) { window[callback](); } customDimension.dimension72 += ' | Shown SYFT no Trial_With Missed Paywalled Articles Collection'; } else { _processNormal() } } }); } else { _processNormal(); } } catch (e) { _processNormal(); } }, function () { _processNormal(); }); //console.log('storyCollectionLoad', $); }
Why ?
Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors
Stock analysis. Market Research. Industry Trends on 4000+ Stocks
Clean experience with
Minimal AdsComment & Engage with ET Prime community Exclusive invites to Virtual Events with Industry Leaders A trusted team of Journalists & Analysts who can best filter signal from noise Get 1 Year Complimentary Subscription of TOI+ worth Rs.799/-
Stories you might be interested in
Subscribe to ourET Investment Opportunities
