The Enforcement Directorate (ED) made significant strides in its investigation into the ABG Shipyard case, conducting thorough searches at seven locations across Mumbai, Delhi, and Pune on November 24. These raids were carried out under the auspices of the Prevention of Money Laundering Act (PMLA), 2002, unveiling a cache of unaccounted assets totaling approximately ₹5 crore.
The focal point of the searches was the residences of individuals and family members associated with ABG Shipyard Ltd and its affiliated or group entities. The ED’s scrutiny resulted in the retrieval and confiscation of undisclosed cash, bullion, and jewelry, constituting a substantial portion of the assets linked to the ongoing probe.
The genesis of the investigation dates back to a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) last year. The case revolves around allegations of a colossal bank fraud, with ABG Shipyard accused of defrauding a consortium of banks spearheaded by ICICI Bank to the staggering tune of ₹22,842 crore.
The crux of the ED’s investigation reveals a complex web of financial malfeasance. ABG Shipyard Ltd. and its conglomerate purportedly availed substantial credit and loan facilities from the ICICI Bank-led consortium, ostensibly for working capital needs and capital expenditure. However, an intricate pattern of fund diversion emerged, indicating that these substantial sums were rerouted through various domestic and international group entities, deviating markedly from their intended usage.
The ED’s relentless pursuit of truth has led to the provisional attachment of properties valued at an estimated ₹2,747.69 Crore. Additionally, the agency has taken decisive action by filing a Prosecution Complaint before the Learned PMLA Court, charging the involved parties with offenses related to money laundering.
ABG Shipyard, a flagship entity under the ABG umbrella, has long been recognized as a prominent player in India’s shipbuilding and ship repair sector. Situated in Dahej and Surat in Gujarat, the company boasts a robust track record, having constructed over 165 vessels, including 46 for international clients, within the past 16 years. Among its notable accomplishments are specialized vessels like newsprint carriers, underscoring its prowess and expertise in the industry.
The ED’s recent raids and subsequent seizures mark a significant milestone in unraveling the complexities surrounding the ABG Shipyard case, shedding light on the alleged financial irregularities that have reverberated through India’s banking sector. As the investigation progresses, the agency remains steadfast in its commitment to unearthing the truth and holding those responsible for financial improprieties accountable.
Sources By Agencies
