CBI lookout circular against ABG chief Rishi Kamlesh Agarwal in Rs 22K-cr cheating case

Tribune News Service

New Delhi, February 15

The CBI today said it has issued lookout circulars against nine accused, including ABG Shipyard Limited chairman Rishi Kamlesh Agarwal, in connection with an alleged bank loan fraud of over Rs 22,842 crore.

The fraud is primarily on account of huge transfer by the firm to its related parties and subsequently making adjustment entries. The notices have been issued to prevent the accused from fleeing the country.

In a statement, the investigating agency said the withdrawal of general consent for CBI probe by certain states had made registration of bank fraud cases “more challenging”. “Around 100 high-value bank fraud cases could not be registered due to non-accordance of consent under Section 6 of the Delhi Special Police Establishment Act by various state governments,” it said.

The agency said the firm had been involved in business with the SBI since 2001. The firm’s account became a non-performing asset (NPA) on November 30, 2013, as per the SBI, it added.

Of the Rs 22,842-crore NPA, majority of the disbursement occurred between 2005 and 2012 by a consortium of 28 banks led by ICICI Bank, which included SBI.

The account was restructured under Corporate Debt Restructuring (CDR) mechanism on March 27, 2014. But operations of the company could not be revived. On September 10, 2014, NV Dand & Associates was deputed to conduct stock audit.

“The audit firm submitted its report on April 30, 2016, and pointed out various faults on part of the accused company. The firm’s account was declared NPA on July 30, 2016, with effect from November 30, 2013,” it said.

Funds diverted to overseas subsidiary

• Huge investments were made in firm’s overseas subsidiary by diverting loans, it is alleged
• Majority of the disbursement occurred from 2005 to 2012 by a consortium of 28 banks
• NPA was restructured under the CDR mechanism, but firm’s operations could not be revived

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