India files complaint against ABG Shipyard alleging $3 bn bank fraud

The report, posted on the Central Bureau of Investigation’s 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 Rs 70.89 billion to ICICI Bank, Rs 36.34 billion to IDBI Bank, Rs 29.25 billion to the State Bank of India , Rs 16.14 billion to Bank of Baroda, Rs 12.44 bilion to Punjab National Bank and Rs 12.28 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.

That report, included in the CBI complaint posted on Sunday, said the fraud took the form of diversion of funds, “misappropriation and criminal breach of trust with an objective to gain unlawfully at the cost of the Bank’s funds”.

“The money was used for purposes other than the purpose for which the funds were released by the Bank”, it said. ($1 = 75.3188 Indian rupees) (Reporting by Nidhi Verma; Additional reporting by Sudarshan Varadhan; Editing by Edmund Klamann)