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India files complaint against ABG Shipyard alleging USD3B bank fraud

NEW DELHI (CNA) – India’s federal investigation agency has filed a police complaint against ABG Shipyard Ltd and its promoters accusing it of defrauding banks of RUP228.42 billion (USD3.03 billion).

The report, posted on the Central Bureau of Investigation’s (CBI) website, said a forensic audit report it received from the banks two years ago had found instances of fraud in April 2012 and July 2017.

ABG Shipyard could not be reached for comment and did not immediately respond to an email. The shipbuilder, identified by the central bank as one of India’s “dirty dozen” highly indebted companies, has filed for bankruptcy resolution.

According to figures from the forensic audit that were included in the CBI complaint, the company owed RUP70.89 billion to ICICI Bank, RUP36.34 billion to IDBI Bank, RUP29.25 billion to the State Bank of India, RUP16.14 billion to Bank of Baroda, RUP12.44 bilion to Punjab National Bank and RUP12.28 billion to Indian Overseas Bank.

State Bank of India, where the accounts of ABG Shipyard were maintained, had filed the forensic audit in a report to the CBI.