The Enforcement Directorate has conducted searches at seven different locations in various cities, pertaining to the ABG Shipyard case, which is purportedly the largest bank fraud case in the country. The investigative agency took action to probe into the matter and gather relevant information. The searches were carried out as part of the ongoing efforts to uncover the details surrounding the alleged financial misconduct involving ABG Shipyard.

Multiple cities were targeted in the operation, reflecting the widespread nature of the case. The Enforcement Directorate's actions signify a step forward in the investigation, aiming to unravel the complexities of what is considered a significant banking fraud in the nation.

According to the central agency, searches were conducted in Mumbai, Delhi, and Pune under the provisions of the Prevention of Money Laundering Act (PMLA) of 2002. The focus of these searches was on the residences of individuals and family members linked to ABG Shipyard Ltd and its affiliated or group companies.

The outcome of these operations resulted in the recovery and seizure of unaccounted cash, bullion, and jewelry, approximately valued at ₹5 crore. This enforcement action aligns with the agency's ongoing endeavours to address financial irregularities and potential money laundering associated with ABG Shipyard Ltd and its related entities.

The ED has launched an investigation based on a First Information Report (FIR) filed by the Central Bureau of Investigation last year against ABG Shipyard Ltd. The company is accused of defrauding a consortium of banks, with ICICI Bank at the helm, to the tune of ₹22,842 crore.

As per the ED probe, ABG Shipyard Ltd. and its group of companies allegedly obtained various credit and loan facilities from the consortium of banks, primarily led by ICICI Bank. These funds were ostensibly sought for working capital requirements and capital expenditures, among other purposes.

However, ABG Shipyard Ltd. and its group companies have reportedly utilized significant funds for purposes other than their stated objectives, redirecting the same through various group entities incorporated both in India and abroad, according to a statement by the ED.

“ED investigation till now has resulted in provisional attachment of properties worth Rs.2,747.69 Crore (approx.). A prosecution complaint has also been filed by the ED before the Ld. PMLA Court for offences of money laundering,” the statement added.

ABG Shipyard, the leading entity of the ABG conglomerate, is reportedly among India's largest companies involved in shipbuilding and ship repair. The company's shipyards, situated in Dahej and Surat in Gujarat, have purportedly produced more than 165 vessels over the past 16 years. Notably, 46 of these vessels were reportedly constructed for international clients. The company's portfolio includes the construction of specialized vessels such as newsprint carriers.

Image source: Hindustan Times