The Central Bureau of Investigation (CBI) has questioned the former chairman of ABG Shipyard, Rishi Agarwal, in a case related to ₹ 22,842 crore bank scam.
According to the sources, the investigating agency searched his house on Saturday following the issuance of summons.
CBI questioned Agarwal this week.
ABG Shipyard Ltd, a shipbuilding company, and its ex-directors Rishi Agarwal, Santhanam Muthuswamy, and Ashwini Kumar have been alleged of frauding 28 banks of ₹ 22,842 crore.
The company had availed credit facilities from the banks between 2005 and 2012.
According to a complaint filed by the State Bank of India, ABG Shipyard had defaulted on the repayment of ₹ 2,925 crore worth debt to the bank.
Some of the other banks include, which the company did not pay back loans were:
₹ 7,089 crore: ICICI Bank
₹ 3,634 crore : IDBI Bank
₹ 1,614 crore : Bank of Baroda
₹ 1,244 crore: PNB
₹ 1,228 crore : IOB.
CBI said that the company did not use the funds as stated as the reason for releasing the funds by the bank.
The CBI has claimed that the ex-promoters had rerouted loans to 98 related companies.
As per the sources, the Enforcement Department will intervene in the matter.
The ED will investigate further into alleged “diversion”, the formation of shell firms to conceal the money, and the role of the company executives in the fraud.
The ABG Shipyard is the company of the ABG Group and is in the business of shipbuilding and repair, with shipyards located in Dahesh and Surat in Gujarat.
The alleged fraud was first uncovered in 2019 during a forensic audit by Ernst and Young LLP.