A Rouse Avenue court has initiated legal proceedings against ABG Shipyard, a Gujarat-based company, its former directors, auditors, and other associated parties in a massive bank fraud and money laundering case. The case, which involves an alleged scam of over ₹22,000 crore has drawn the attention of the Central Bureau of Investigation (CBI) and a consortium of banks, including the State Bank of India (SBI). The Chief Judicial Magistrate (CJM) Deepak Kumar has issued summons for the accused to appear in court, signaling the next phase of a long-running investigation.
The Allegations Unveiled
The investigation, spearheaded by the CBI, alleges that ABG Shipyard and its key personnel orchestrated a series of fraudulent activities. It is claimed that the company transferred vast sums of money to related entities and then made “adjustment entries” to conceal the transactions. The probe further revealed that accounts were falsified, and the company presented misleading financial figures to lenders and shareholders. The fraudulent activities allegedly allowed the company to secure credit facilities from a consortium of banks, led by ICICI Bank, which were then dishonestly diverted to other group concerns.
Intricate Web of Deception and Diversion
The chargesheet filed by the CBI outlines a detailed conspiracy involving ABG Shipyard’s promoters, directors, and other key managerial staff. The investigation found that the accused individuals engaged in a criminal conspiracy to defraud the banks. A particularly damning revelation is the alleged siphoning of funds to acquire 14 residential flats in Mumbai for ₹33.50 crore. These properties were reportedly purchased by a company under the control of Rishi Kamlesh Agarwal, the former managing director of ABG Shipyard, highlighting a clear trail of misused funds.
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Legal Scrutiny and Court Action
The court’s decision to take cognizance of the case comes after a thorough review of the CBI’s chargesheet and supplementary chargesheet. CJM Deepak Kumar stated he has perused the extensive documentation, including witness statements and submissions from the public prosecutor and the investigation officer. The court’s order on August 11, which mentioned “clear and categorical findings” in the final reports, underscores the seriousness of the evidence gathered. The accused have been charged under various sections of the Indian Penal Code (IPC), including Section 120B (criminal conspiracy), Section 420 (cheating), and Section 477A (falsification of accounts).
What Lies Ahead
With summons issued for August 22, the accused persons are now required to appear before the court. This marks a critical juncture in the legal battle, as the prosecution will present its case and the defense will have the opportunity to respond. The case, registered by the CBI on August 25, 2020, based on a complaint from the consortium of banks, has seen years of investigation. The upcoming court proceedings are expected to shed more light on the intricate details of the fraud and bring the matter closer to a resolution, holding those responsible accountable for the staggering financial losses incurred by the banks and the public.
