ABG fraud case: SBI MD Swaminathan J told what happened in the case till now

ABG Fraud Case Latest News: SBI MD Swaminathan J on ABG Shipyard fraud case has said that ABG Shipyard was availing loan facilities from about 28 banks since 2001. Due to this the company could not sustain for a long time. The company’s account was declared NPA in November 2013 due to impractical operations. After this, under the Corporate Debt Restructuring Mechanism, banks restructured the loan in 2014 and gave the company more time to repay it.

Swaminathan said the restructuring package was in effect for more than two years. The shipping industry faced a slowdown at that time, so the company’s projections for restructuring could not be achieved. In 2016, the account was classified as NPA with effect from 2013.

Swaminathan also said that an audit was ordered by lead bank ICICI and the report came in 2019. In which the transfer of funds to the parties concerned and the use of the funds for other purposes was indicated. After discussion, in 2019 all the banks declared the account as fraud.

According to Swaminathan, SBI being the largest PSB was authorized by other banks to file a CBI complaint. The first complaint was filed in November 2019. A comprehensive complaint was filed in December 2021. This usually happens in respect of large scale corporate debt. I don’t see any delay, it is NPA since 2013.

According to Swaminathan J, we will aim to achieve as much as possible. A thorough provision has been made for such cases. Hence there will be no impact on the balance sheet of any bank or profit/loss accounts. The CBI has so far registered an FIR against 8 people in the ABG Shipyard scam case of about Rs 22,842 crore. This company has defrauded a group of 28 banks. State Bank of India has now spoken on the biggest scam in banking history.

read this also- Election 2022: While voting in EVM, keep these things in mind, in this way check whether your vote has gone to the right place or not?

read this also- Election 2022: Now you will not have to stand in long lines for voting, in this way you can cast your vote sitting at home