The Enforcement Directorate has initiated money laundering probe against the accused persons in connection with the ₹22,842–crore bank fraud case involving Gujarat-based ABG Shipyard Limited and others.
The Central Bureau of Investigation had earlier registered a case on the basis of a complaint lodged by the State Bank of India (SBI), alleging that the company and its directors had caused losses to a consortium of 28 banks.
The company is in the business of ship building and repair. Between 2005 and 2012, it had taken credit facilities from the lenders. The loan account was restructured under the Corporate Debt Restructuring mechanism on March 27, 2014. However, the operations of the company could not be revived. The loan account was declared a non-performing asset (NPA) on July 30, 2016, with effect from November 30, 2013.
Subsequent forensic audit disclosed multiple financial irregularities, as alleged. Funds were transferred to 98 related entities. The audit covered the period from 2012 to 2017. The company was also referred to the National Company Law Tribunal-Ahmedabad for Corporate Insolvency Resolution Process. Several consortium members declared the account as fraud between April 2019 and March 2020.
