InvestorQ : Why has CBI filed a complaint against ABG Shipyards?
Deepa Salunkhe made post

Why has CBI filed a complaint against ABG Shipyards?

Arya Nanda answered.
1 year ago

In a huge twist to the ongoing story on bank frauds and money laundering, the Central Bureau of Investigation (CBI) has filed a police complaint against shipping company, ABG Shipyards, along with its promoters. The CBI has accused the company and its promoters of defrauding banks to the tune of whopping Rs.22,842 crore or nearly $3 billion making it one of the biggest money laundering scams in India and nearly thrice as large as Kingfisher.

ABG Shipyards was for long one of the most indebted companies in India which eventually crumbled under the weight of debt and defaulted on its payments. ABG has dues of Rs.7,089 crore to ICICI Bank, Rs.3,634 crore to IDBI Bank, Rs.2,925 crore to SBI, Rs.1,614 crore to BOB, Rs.1,244 crore to PNB and Rs.1,228 crore to IOB. CBI has alleged clear diversion and laundering of funds, with funds being used for other than the stated purpose.