Advertisement

ABG Shipyard case: ED conducts searches in Mumbai, Pune & Surat

The ED's case is based on the FIR registered by the Central Bureau of Investigation (CBI) on February 7

Staff Reporter | Updated on: Tuesday, April 26, 2022, 07:34 PM IST

ABG Shipyard case: ED conducts searches in Mumbai, Pune & Surat  | (PTI Photo)
ABG Shipyard case: ED conducts searches in Mumbai, Pune & Surat | (PTI Photo)
Advertisement

The Enforcement Directorate (ED) on Tuesday carried out searches at premises linked to now insolvent ABG Shipyard in a money laundering case registered by the agency. Searches were underway at 26 premises including those in Mumbai, Pune and Surat. ED has registered a money laundering case against the firm, its promoters for defrauding banks of Rs 22,842 crore. The agency’s case is based on the predicate offence registered by the Central Bureau of Investigation (CBI) in the matter.

The ED's case is based on the FIR registered by the Central Bureau of Investigation (CBI) on February 7 in which it has alleged that the company diverted loans handed to it by a consortium of 28 banks, and used its sister concerns to round-trip funds and service other loans instead of using them for the purpose they were taken.

In February, the CBI had twice questioned Rishi Agarwal, promoter of ABG Shipyard in connection with the case. The CBI had also conducted searches at 13 locations in connection with the case and had recovered several incriminating documents such as books of accounts of the accused borrower company, purchase/sales details, minutes of meetings of Board, share registers, various contract files. The CBI had also obtained bank account details of the accused as well as related parties.

The CBI had filed an FIR against ABGSL, its Directors/Promoters Rishi Agarwal, Santhanam Muthaswamy, Ashwini Kumar, Sushil Kumar Agarwal and Ravi Vimal Nevetia, another company ABG International Pvt Ltd and unknown public servants, on charges of alleged abuse of official position, criminal conspiracy, cheating and criminal breach of trust under the sections of Indian Penal Code and the Prevention of Corruption Act. The agency had also opened Look Out Circulars (LOCs) against the accused allegedly involved in the case.

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Published on: Tuesday, April 26, 2022, 07:34 PM IST