The CBI arrested the founder-chairman of ABG Shipyard Limited, Rishi Kamlesh Agarwal, on Wednesday in connection with an alleged bank fraud of more than Rs 22,842 crore, officials said.
The Central Bureau of Investigation (CBI) had charged Mr Agarwal, a former chairman of the company, and others for the alleged offences of criminal conspiracy, cheating, criminal breach of trust and abuse of official position under the Indian Penal Code (IPC) and the Prevention of Corruption Act, they said.
The company was sanctioned credit facilities from 28 banks and financial institutions led by the ICICI Bank, with the State Bank of India (SBI) having an exposure of Rs 2,468.51 crore, the officials said.
A forensic audit by Ernst and Young has shown that between 2012 and 2017, the accused colluded with each other and committed illegal activities, including diversion and misappropriation of funds and criminal breach of trust.
The funds were used for purposes other than for which they were released by the banks, the officials said.
The loan account was declared a non-performing asset (NPA) in July 2016 and a fraud in 2019.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Two Indian-Origin Start-Up Executives Convicted Of $1 Billion Fraud In US CBI Files Charges Against Ex ABG Shipyard Chief In Rs 1,688 Crore Bank Fraud Case Probe Agency Attaches Rs 2747 Crore Worth Assets In ABG Shipyard Fraud Case Is Safe Car Enough? Volvo Crash That Killed CEO, Family Sparks Big Question "Nothing Short Of Nightmare": Woman Misses Life Event, Slams Air India Pics: Rahul Gandhi's Family Lunch At Iconic Delhi Restaurant Public Sector Hydropower Company Hiring For 118 Posts, Check Details Delhi's Air Quality Turns 'Severe' Despite GRAP-4 Restrictions PM Modi Meets Yoga Practitioner, Other Influencers In Kuwait Track Latest News Live on NDTV.com and get news updates from India and around the world.