Investigating one of the biggest bank frauds, the CBI earlier this month registered a case against the insolvent ABG Shipyard Ltd. and its promoters and director for causing a loss of Rs 22,842 crores to a consortium of banks.
“The fraud is primarily on account of a huge transfer by M/s ABG Shipyard Ltd to its related parties and subsequently making adjustment entries. It is also alleged that huge investments were made in its overseas subsidiary by diverting bank loans. The critical period of the investigation is 2005-2012,” the CBI said in a press release Tuesday.
Sources said that the company availed mainly three different types of loans from 28 banks. The monies raised through these loans were then diverted through 98 sister concern companies and mainly used to create personal assets.
“This is a complex scam which involves circular transactions and use for shell companies to layer them. The loans were availed maily either for the purpose of evergreening of the loans or to create assets for the accused,” said an official privy to the development.
The probe has found that between 2007 and 2009, properties worth Rs. 83 crores were purchased out of…
