ED Searches 26 Locations In ABG Shipyard Money Laundering Case

The Enforcement Directorate (ED) on Tuesday carried out massive searches at 26 locations of ABG Shipyard in Mumbai, Pune, and Surat, in connection with its money laundering probe into what could be the country’s biggest bank fraud.

Surat-based ABG Shipyard and its former promoters are accused of duping a consortium of 28 banks to the tune of Rs 22,842 crore.

“About 24 locations at Mumbai and one each in Pune and Surat have been covered, said an agency official without giving further details. Searches are to be continued on Wednesday, he indicated.

Early this month, the federal agency had questioned the shipping firm’s former Chairman Rishi Agrawal.

The enforcement agency is looking into the alleged "diversion" of bank loan funds, the creation of shell firms to launder the public money, and the role of the executives of the company and others.

The ED case has been filed under various sections of the Prevention of Money Laundering Act (PMLA) after the investigators studied the CBI complaint and the forensic audit report, sources said.

ABG is accused of cheating a consortium of 28 banks led by ICICI Bank, with ICICI having the highest exposure of Rs 7,089 crore, followed by IDBI Bank ( Rs 3,639 crore), State Bank of India ( Rs 2,925 crore), Bank of Baroda ( Rs 1,614 crore) and Punjab National Bank ( Rs 1,244 crore).

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