Mumbai: The Enforcement Directorate (ED) conducted search operations on November 24 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, at seven locations spanning Mumbai, Delhi and Pune related to ABG Shipyard Limited and its affiliated entities.
Recovery of unaccounted currency, bullion and jewellelry
The searches, carried out at the residences of individuals and family members associated with ABG Shipyard and its related / group companies, resulted in the recovery and seizure of unaccounted Indian and foreign currency, bullion, and jewellery totalling approximately Rs5 crore (Rs85 lakh in Indian currency; foreign currency equivalent to Rs46.85 lakh, gold and silver coins worth Rs86.52 lakh, and jewellery worth Rs2.83 crore). Additionally, several incriminating documents and materials were seized.
The ED initiated the investigation based on an FIR registered by the Centra Bureau of Investigation, New Delhi, against ABG Shipyard and others for causing a loss to the tune of Rs22,842 crore to a consortium of banks led by ICICI.
Funds diversion through various group companies
According to the ED’s findings, ABG Shipyard and its group companies allegedly obtained credit / loan facilities from the consortium for working capital requirements, capital expenditure, and other financial needs. However, it has been revealed that these funds were diverted for purposes other than their intended use, channelled through various group companies both in India and abroad.
The investigation has so far resulted in the provisional attachment of properties worth Rs2,747.69 crore (approximately). A prosecution complaint has also been filed by the ED before the PMLA Court for offences of money laundering.
Further investigation is in progress.