India Files Complaint Against ABG Shipyard Alleging $3 Billion Bank Fraud


A man rides his bicycle past the headquarters of India’s Central Bureau of Investigation (CBI) in New Delhi, India, March 6, 2018. REUTERS/Adnan Abidi

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NEW DELHI, Feb 13 (Reuters) – India’s Federal Investigation Agency has filed a police complaint against ABG Shipyard Ltd and its promoters accusing it of defrauding banks of 228.42 billion Indian rupees ( $3.03 billion).

The report, posted on the Central Bureau of Investigation’s website, said a forensic audit report received from the banks two years ago revealed cases of fraud in April 2012 and July 2017.

ABG Shipyard could not be reached for comment and did not immediately respond to an email. The shipbuilder, identified by the central bank as one of the “dirty dozen” of highly indebted Indian companies, has filed for bankruptcy.

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According to forensic audit figures included in the CBI complaint, the company owed 70.89 billion rupees to ICICI Bank (ICBK.NS), 36.34 billion rupees to IDBI Bank (IDBI.NS) , 29.25 billion rupees to State Bank of India (SBI.NS), 16.14 billion rupees to Bank of Baroda (BOB.NS), 12.44 billion rupees to Punjab National Bank (PNBK.NS) and 12.28 billion rupees to Indian Overseas Bank.

The State Bank of India, where ABG Shipyard’s accounts were held, had filed the forensic audit in a report to the CBI.

That report, included in the CBI’s complaint released on Sunday, said the fraud took the form of embezzlement, “misappropriation and criminal breach of trust for the purpose of gaining unlawfully to the detriment funds of the Bank”.

“The money was used for purposes other than those for which the funds were released by the Bank,” he said.

($1 = 75.3188 Indian rupees)

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Reporting by Nidhi Verma; Additional reporting by Sudarshan Varadhan; Editing by Edmund Klamann

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