ABG Shipyard biggest fraud case ₹22,842 crore as ICICI Bank and SBI, 44%, major losers.

staff Reporter

The ABG Shipyard fraud case could be the biggest bank fraud case in the history of India, with an exposure of ₹22,842 crore to a consortium of 28 banks led by the State Bank of India and ICICI Bank.

Of the total ₹22,842 crore exposure to ABG Shipyard, there are two domestic systemically important banks – otherwise known as ‘too big to fail’ – ICICI Bank and the state-run SBI.

Here’s how much exposure each bank has to ABG Shipyard:

Bank Exposure Share gain/loss
ICICI Bank ₹7,089 crore -3.10%
IDBI Bank ₹3,639 crore -3.70%
SBI ₹2,925 crore -3.20%
Bank of Baroda ₹1,614 crore -3.30%
PNB ₹1,244 crore -3.80%
Others ₹6,331 crore
Total ₹22,842 crore

Note: Share gain/loss as of 10:00 a.m., February 14

As per the FIR filed on SBI’s complaint, a forensic audit conducted by Ernst & Young revealed that from April 2012 to June 2017, loans given to the company were siphoned off and were also used to purchase assets for its related parties. The company allegedly also invested some of those loans in its overseas subsidiary.

The primary accused in the case are Rishi Kamlesh Agarwal, the company’s former chairman and managing director, Santhanam Muthaswamy, executive director and three other directors – Sushil Kumar Agarwal, Ashwini Kumar and Ravi Vimal Nevetia.

The matter surfaced after an audit conducted by EY pointed towards the alleged fraud. A 2019 complaint by SBI was returned by the CBI, seeking an internal investigation by the bank, including the details of fraud committed on other banks which are a part of the consortium.

SBI filed a fresh complaint in September 2020, informing the CBI that staff accountability had been dealt with and closed by the competent authority and it was found that its staff was not involved in the alleged fraud.

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