CBI registers case against ABG Shipyard in Rs 22,842 crore fraud

In what has emerged as the biggest bank fraud so far, the Central Bureau of Investigation has registered a case against a private company and others for defrauding a consortium of banks to the tune of Rs 22,842 crores (approx).

The case has been registered against ABG Shipyard and it's Directors for allegedly duping a consortium of 28 banks. The case has also been registered against unknown public servants.

It is alleged that the accused had cheated the consortium of 28 banks including the branches of erstwhile State Bank of Patiala, Commercial Finance Branch, New Delhi, erstwhile State Bank of Travancore, Commercial Branch, New Delhi, State Bank of India, Overseas Branch, Mumbai etc.


The consortium of 28 banks was led by ICICI Bank. The said private company/borrower company based at Surat(Gujarat)was engaged in the business of shipbuilding and ship repair.

It is further alleged that the accused had connived together and committed activities by way of diversion of funds for the purpose other than for which the funds were released by the bank. Huge amounts were allegedly transferred by said private company to its related parties and subsequently adjustment entries were made.

It is further alleged that bank loans to the said private company was diverted and huge investment was found to be made in the overseas subsidiary. The CBI has also alleged that funds from banks were diverted to purchase huge assets in the name of its related parties.

The agency sleuths carried out searches on Saturday at 13 locations in the premises of accused including private company, Directors at Surat, Bharuch, Mumbai, Pune etc. The agency claims to have recovered incriminating documents.