Fresh cases filed against ABG Shipyard owner, others for Rs 1,688-cr fraud

The CBI has filed an FIR against ABG Shipyard's former chairman Rishi Agarwal in another case of defrauding a Punjab National Bank-led consortium of Rs 1,688 crore, officials said Thursday.

The agency has booked Vadraj Cement company, Agarwal, and two others on charges of criminal conspiracy, cheating, and criminal misconduct for allegedly causing a wrongful loss of Rs 1688.41 crore to the bank consortium, they said.

The CBI conducted searches at three locations, including Mumbai and Jaipur, which led to the recovery of several incriminating documents and articles, said a spokesperson of the agency.

"It was alleged that the borrower company approached Punjab National Bank and other members of consortium banks for setting up field cement facilities at Mora village in Surat and Thumdi village in Kutch district (Gujarat), for making various types of cement," he said.

The banks had declared the account a non-performing asset on March 20, 2018, after which they said Pipara and Co conducted a forensic audit.

"The accused had a malafide intent to defraud the bank right from inception. The accused, with the common intention, has accordingly represented to the bank that the project is bonafide and the requirement is genuine.

"Further, many of the entries were only book entries and sham transactions only to induce the complainant (PNB) to believe that the borrower is entitled to avail such a huge loan," the bank said in its complaint, which is now part of the FIR.

Agarwal was earlier booked in another case of Rs 22,842-crore bank fraud by ABG Shipyard Ltd.