The Enforcement Directorate (ED) on Wednesday, 16 February, filed a money laundering case against shipbuilding firm ABG Shipyard and its promoters, alleging bank fraud of over Rs 22,842 crores, news agency PTI reported quoting officials.
The case, which will look into the alleged diversion of bank loans and creation of shell companies, has been registered against the firm and its former directors Rishi Agarwal, Santhanam Muthuswamy, and Ashwini Kumar, NDTV reported.
“A case has been registered under provisions of the Prevention of Money Laundering Act. Further action will be taken as per law,” an ED official reportedly stated.
The development comes a few days after the Central Bureau of Investigation (CBI) filed a First Information Report (FIR) in the matter, and two days after the CBI issued look-out circulars (LoCs) against the accused in order to prevent them leaving the country.
According to the CBI, ABC Shipyard’s former chairperson and managing director Rishi Kamlesh duped a consortium of 28 banks, which includes State Bank of India, ICICI Bank, Bank of Baroda, Central Bank of India, and others.
The CBI probe had also revealed that latest 98 companies were floated by ABG Shipyard to divert funds, which were later used to create personal assets for the companies.
(With inputs from NDTV and The Indian Express.)
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