ED files money laundering case against ABG Shipyard

The Law Enforcement (ED) Directorate on Wednesday registered a money laundering case against the Gujarat-based shipping company ABG Shipyard and its directors in connection with more than Loan default of Rs 22,800 crore by company.

The ED case is based on the FIR filed by the CBI on February 7 in which it alleged that the company misappropriated loans granted to it by a consortium of 28 banks and used its sister concerns to make go- return funds and repay other loans instead. to use them for the purposes for which they were taken.

Sources said the ED case named the same defendant including ABG CMD Rishi Agarwal as in the CBI FIR.

“A case has been registered under the provisions of the Prevention of Money Laundering Act. Further action will be taken in accordance with the law,” an ED official said.

The Indian Express had reported on Tuesday that the ED was reviewing documents related to the case to register a money laundering case.

The CBI has already opened surveillance circulars against the defendants to prevent them from fleeing the country. Sources said the ED could follow suit.

The CBI found that ABG allegedly used up to 98 related companies in channeling the funds, which ED officials say is a clear indication of money laundering. The ED has the power to seize the assets of companies and individuals involved in money laundering.

This is not the first time that the ABG Group has come under the ED scanner. In 2019, the agency seized assets worth Rs 963 crore belonging to a cement manufacturing subsidiary of the group as part of its investigation into money laundering in the IL&FS business.

As reported by The Indian Express, the ED investigation revealed that third-party lending by IFIN – the non-banking financial arm of IL&FS Group – to companies such as ABG Group caused a loss of 2,000 crores of rupees to IFIN.

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