New Delhi: The CBI on Wednesday arrested ABG Shipyard Limited chairman Rishi Kamlesh Agarwal in connection with an alleged bank fraud of more than Rs 22,842 crore. The move comes after the probe agency had charged Agarwal, a former chairman of the company, and others for the alleged offences of criminal conspiracy, cheating, criminal breach of trust and abuse of official position under the Indian Penal Code (IPC) and the Prevention of Corruption Act.
The CBI officials told news agency PTI that the company ABG Shipyard Limited was sanctioned credit facilities from 28 banks and financial institutions led by the ICICI Bank, with the State Bank of India (SBI) having an exposure of Rs 2,468.51 crore.
The CBI further added that a forensic audit by Ernst and Young showed that between 2012 and 2017, the accused colluded with each other and committed illegal activities, including diversion and misappropriation of funds and criminal breach of trust.
The funds were used for purposes other than for which they were released by the banks, the CBI officials added.