ABG Shipyard fraud: Banks' detection faster than usual, says FM Sitharaman

The alleged Rs 22,842 crore ABG Shipyard fraud is the largest fraud detected in the Indian banking system yet.

The consortium of banks — involved in lending to ABG Shipyard — that turned into a non-performing asset (NPA) and then a fraud, followed all due processes. These banks detected and determined the fraud faster than the usual time of 52-54 months, finance minister Nirmala Sitharaman said on Monday.

“The process has been going on since 2014. In general, for any account, determining the element of fraud takes almost 52-54 months. I should say to the credit of the banks, they have taken less time than the average to detect the fraud. A forensic audit was done. All evidence was collected