ABG Shipyard — India's Largest Bank Fraud

A major financial fraud case involving ABG Shipyard Limited has emerged, centered on an alleged bank loan scam amounting to ₹22,842 crore. According to investigators, the company and its promoters allegedly hatched a criminal conspiracy to cheat and defraud a consortium of 28 banks and financial institutions led by ICICI Bank. Loans obtained for working capital and business expenses were reportedly diverted and misappropriated through a network of paper companies and overseas entities, including entities based in Singapore, and used to acquire immovable properties and invest in mutual funds in tax havens.

Investigators alleged that the accused manipulated company books and routed funds away from their intended purposes, leading to severe financial distress, delays in shipbuilding contracts—including an order from the Indian Navy—and eventual defaults. A forensic audit by Ernst and Young uncovered various illegal activities spanning several years, prompting complaints from the State Bank of India and subsequent investigations by the Central Bureau of Investigation and the Enforcement Directorate.

Authorities have taken significant legal and punitive actions in response to the alleged fraud. The Enforcement Directorate provisionally attached assets worth more than ₹2,747 crore, including dockyards in Surat and Dahej, agricultural lands, commercial and residential premises, and bank accounts. The founder and chairman of the company, along with other directors and individuals, faced arrest and chargesheet filings by federal agencies. Meanwhile, the company's accounts have been referred to the National Company Law Tribunal for corporate insolvency and liquidation proceedings.

Not yet reported: The articles do not specify the final judicial verdicts or the exact recovery amounts realized from the ongoing NCLT liquidation process.