The Ahmedabad branch of the Enforcement Directorate (ED) raided multiple premises of ABG Shipyard Ltd in Mumbai, Pune and Surat. The raids were conducted in connection with a money-laundering probe in an alleged ₹22,842-crore bank loan fraud case, an official said. The ED also searched the premises of the company’s directors.

The raids have been conducted on the basis of an FIR registered in New Delhi in February. 

The FIR recorded a complaint by State Bank of India alleging that the company committed a fraud and cheated by diverting loans handed to it by a consortium of 28 banks. The complainant alleged that the company, including eight other accused, used its sister concerns to round-trip funds and service other loans instead of using them for the purpose they were taken.

The FIR reviewed by BusinessLine, said that Rishi Kamlesh Agarwal, Chairman & Managing Director and Guarantor, Santhanam Muthaswamy, Executive Director, Ashwini Kumar, Director, Sushil Kumar Agarwal, Director, Ravi Vimal Nevetia, Director and ABG International Pvt. Ltd. and unknown public servants where booked for offences of criminal conspiracy, cheating, criminal breach of trust and abuse of official position.

“Causing wrongful loss of ₹22,842 crore to the consortium of banks, comprising State Bank of India, e-State Bank of Patiala (presently State Bank of India), e- State Bank of Travancore (presently State Bank of India) etc., led by ICICI Bank.”

The ED is in the midst of collecting evidence, and questioning the directors to understand the paper trail and the alleged modus operandi.