ABG Shipyard Scam

Prepared by: Sunisha Upadhyay

Bhavatee Dholu
Summite to : Shivani Soni
• Content
• About Company.
• What is ABG Shipyard scam?
• Key players of scam.
• Time line of ABG Shipyardscam.
• How much money does ABGshipyard owe to bank?
• Conclusion.
 About ABG Company

• In1985 ABG Shipyard Ltd, the flag-

ship company of the ABG Group,
is incorporated.

• It is promoted by Rishi Kamlesh

Agarwal, and is in the business of
shipbuilding and repair, with ship-
yards in Dahesh and Surat in Gu-
• A consortium of 28 banks, with ICICI as the
leading bank, finance it.

• Business booms and ABG Shipyard builds 165 vessels in

16 years, including specialised vessels like newsprint car-
riers, self-discharging and loading bulk cement carriers.
 What is ABG shipyard scam?
ABG Shipyard, now credited with India’s
biggest bank fraud, created a web of
transactions to cheat a consortium of 28
banks of Rs 22,842 crores between 2012
and 2017, in a case which has come to
light only now.The banks includ State
Bank of India (SBI), IDBI and ICICI.
 Key players of ABG Shipyard Scam

1.Ex-Chairman and Managing Director: Rishi KamleshAgarwal.

2.Ex-Executive Director: Santhanam Muthaswamy.

3.Ex-Directors: Ashwini Kumar,

Sushil kumar Agarwal,
Ravi VimalNeveti.
 Timeline of ABG Shipyard Fraud Case
• 2005-2010: Banks continue to lend generously to
ABG Shipyards despite signs of trouble from a
global financial crises in 2008.

• 2008: The global financial crises, led by the U.S.

housing bubble and the collapse of Lehman
Brothers, hits ABG Shipyards. The company now
has a paucity of working capital which caused
“significant increase in the operating cycle,
thereby aggravating the liquidity and financial
problem”.
• March 2014: SBI attempts to re-structure loans to ABG Ship-
yard under corporate debt restructuring or CDR. The re-struc-
turing fails as ABG Shipyards is unable to service the interest
and instalments on the due date.

• July 2016: The ABG account is declared an NPA, with back-

dating to 30 November, 2013.
• Jan 2019: SBI identifies a fraud.

• Jan 2019: Ernst and Young LLP conducts forensic audit on

ABG Shipyard. It finds evidence of fraud between April
2012 and July 2017. The audit shows that fraud was con-
ducted through “diversion of funds, misappropriation, and
criminal breach of trust, with an objective to gain unlaw-
fully at the cost of the bank’s funds.”
• ABG Shipyard availed mainly three different types of loans from 28
banks. The monies raised through these loans were then diverted
through 98 sister concern companies and mainly used to create
personal assets.

• November 2019: SBI files a complaint.

• August 2020: SBI files a more comprehensive complaint.

• 7 February 2022: CBI registers a case, books ABG Shipyard and ABG
International Private Ltd.

CBI’s FIR says ABG SL owes a total of Rs 22,842 crore.

•
• It owes ICICI (which was leading the consortium) Rs 7,089 crore,
SBI Rs 2,925 crore, IDBI Bank Rs 3,639 crore, Bank of Baroda Rs
1,614 crore, Punjab National Bank Rs 1,244 crore, Exim Bank Rs
1,327, Indian Overseas Bank Rs 1,244 crore, and Bank of India Rs
719 crore, among others.
• 15 February, 2022: CBI issues lookout
notices against promoter Rishi Agar-
wal, and ABG executives Santhanam
Muthuswamy and Ashwini Kumar.

• Rishi Agarwal, the former promoter of

fallen shipbuilder ABG Shipyard Ltd, has
been arrested by the Central Bureau of
Investigation (CBI)
How Much Money Does ABG Shipyard
Owe To Banks?
 Conclusion

ABG Shipyard scam turned out to be the biggest

known bank fraud in India. There is a need to take
strict action against the people who are responsible
for the same. Moreover, there is a need to take steps
to prevent the pile-up of NPAs, because prevention is
better than cure.
 THANKS
FOR WATCH-
ING

Refrence:The Economic times New's websites.