© Reuters.
INDIA – In a significant development in the ABG Shipyard bank loan fraud case, the Enforcement Directorate (ED) conducted raids at various locations associated with the shipbuilding firm on November 24, resulting in the seizure of Rs 5 crore in cash and bullion. The raids were part of an ongoing investigation into a massive Rs 22,842 crore scam impacting an ICICI Bank-led consortium.
The initial probe by the ED began in April 2022 after a complaint by the Central Bureau of Investigation (CBI) alleged that ABG Shipyard had misused funds intended for working capital requirements and capital expenditures. This led to the uncovering of a financial scandal where the company is accused of diverting funds for purposes other than those they were originally intended for.
As part of the ED’s enforcement action under the Prevention of Money Laundering Act (PMLA), it has not only conducted recent raids but also provisionally attached assets worth Rs 2,747.69 crore. Furthermore, legal proceedings for money laundering violations have been initiated against ABG Shipyard and related entities. Charge sheets detailing the extent of the alleged financial mismanagement have been filed against the company.
ABG Shipyard, known for its shipbuilding capabilities, operates two major shipyards in Gujarat. The Dahej shipyard has the capacity to construct vessels up to 120K Deadweight Tonnage (DWT), while the Surat shipyard can handle the construction of ships up to 18K DWT.
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