Adding to the list of bank frauds- Rs22,842 crores bank fraud by ABG SHIPYARD

Already mulling over slow economic growth, higher inflation, and political dramas across the country, Indian stock markets hit with another blow of bank fraud. This is said to be the largest bank fraud, witnessed by the country, amounting to a whopping amount of Rs22,842 crores.

ABG SHIPYARD

ABG Shipyard is one of the largest private-sector shipbuilding yards in the country, certified by DNV for ISO 9001-2008, founded in the year 1985. To date, the company has delivered 149 specialized and sophisticated vessels and has orders in hand worth Rs 16,600 crores. It has State of the art manufacturing facilities at Dahej and Surat in Gujrat. It operates a ship repair unit in Goa, the largest ship maintenance facility in  India.

Timeline of biggest bank fraud of the country

  • In July 2016 the shipyard’s loan account was declared as a non-performing asset (NPA).
  • State bank of India filed its first complaint on 8th November 2019.
  • The account was declared as Fraud.
  • CBI came into the picture and sought some more clarification in March 2020.
  • SBI filed a new complaint in August 2020.
  • CBI acted on SBI’s complaints after scrutinizing for over a year on 7 Feb 2022.

Who all made it to the CBI List

  • Rishi Aggarwal (chairman)
  • Santhanam Muthaswamy( former executive director)
  • Ashwini Kumar (director)
  • Sushil Kumar (director)
  • Ravi Vimal Nivetia (director)
  • ABG International Pvt Ltd. 

Charges against the defaulters

Criminal Conspiracy, cheating, criminal breach of trust, and abuse of official position under the IPC and the Prevention of Corruption Act

List of banks with the respective amount claimed


Stocks to avoid

ICICI bank has the maximum exposure and the second being IDBI and SBI having the third-largest exposure in Rs22,824 crores fraud.

All the banks in the list must be avoided to buy at this point. However, it will give investors a buying opportunity in shares like ICICI Bank, SBI at lower prices.

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