New Delhi: On the alleged fraud of ₹22,842 crores by ABG Shipyard Ltd, India’s largest state-owned bank State Bank of India (SBI) said in a statement today, February 13, that the account is presently undergoing “liquidation under an NCLT driven process”, and that at no point in time, there was “any effort to delay the process”.
SBI has said that the lender’s forum diligently follows through with CBI in all such cases. ABG Shipyard has been accused of diversion of funds, misappropriation, and criminal breach of trust.
On alleged fraud of Rs 22,842 crores by ABG Shipyard, SBI says, "Financed under consortium arrangement over 2 dozen lenders led by ICICI Bank. Due to poor performance, account became NPA in Nov 2013. Several efforts were made to revive company operations but couldn't succeed." https://t.co/A8vGvEeVBk
— ANI (@ANI) February 13, 2022
SBI has said that although ICICI Bank was the lead lender in the consortium and IDBI was the second lead, it was preferred that SBI being the largest PSB lender, lodges the complaint with CBI. “The first complaint was filed with CBI in Nov 2019. There was a continuous engagement between CBI and Banks and further information was getting exchanged,” it added
The CBI has booked ABG Shipyard Ltd and its then Chairman and Managing Director Rishi Kamlesh Agarwal along with others for allegedly cheating a consortium of banks led by SBI of over ₹22,842 crore, news agency reported on Thursday.
ABG Shipyard loan account became NPA in 2013
Talking about the chronology of the case, SBI said ABG Shipyard, which was incorporated on 15 March 1985, has been under banking arrangements since 2001. “Financed under consortium arrangement over a two dozen lenders. The leader in Consortium was ICICI Bank. Due to poor performance, the account became NPA on 30/11/2013. Several efforts were made to revive the company operations but could not succeed,” a statement from the biggest state-owned bank said.
The company’s loan account was restructured under the CDR mechanism in March 2014 by all lenders, said SBI, adding that the shipping industry was going through a downturn, one of the worst ever seen, and the operations of the company could not revive.
As per the SBI, after the restructuring failed, the ABG Shipyard’s account was classified as NPA (non-performing asset) in July 2016, with backdated effect from 30th Nov. 2013. E&Y was appointed as forensic auditor by lenders during April 2018 and they submitted their report on January 19.