ED seizes cash, jewellery worth Rs 5 crore in ABG Shipyard money laundering case

The Enforcement Directorate (ED) has seized cash and jewellery worth about Rs 5 crore after fresh searches against ABG Shipyard and others as part of a money laundering probe linked to an alleged bank loan fraud. The searches were undertaken on November 24 at seven locations in Mumbai, Pune and Delhi.

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Background of the Case

The central agency undertook searches in this case first time in April, 2022. The searches were conducted at the residences of the persons, family members related to ABG Shipyard Ltd and its related group companies which resulted in the recovery and seizure of unaccounted cash, bullion and jewellery to the tune of Rs 5 crore, the ED said in a statement.

Money Laundering Case

The money laundering case stems from the FIR filed by the Central Bureau of Investigation (CBI) against the company for causing loss to the tune of Rs 22,842 crore to a consortium of banks led by ICICI Bank. ABG Shipyard and its group companies availed various credit/loan facilities from the consortium of banks for the purpose of working capital requirement and capital expenditure and some other purposes, it said.

Diversion of Funds

However, ABG Shipyard and its group companies utilised huge funds for purposes other than its stated use and diverted the same through various group companies incorporated in India and abroad, the ED alleged. The agency has attached assets worth a total Rs 2,747.69 crore in this case till now and has earlier filed a charge sheet.

ABG Shipyard's Role in Indian Ship Building Industry

ABG Shipyard has been a major player in Indian ship building industry operated from its shipyards located at Dahej and Surat in Gujarat with capacity to build vessels up to 18,000 dead weight tonnage at Surat shipyard and 1,20,000 dead weight tonnage at Dahej shipyard.

The Enforcement Directorate's seizure of cash and jewellery worth Rs 5 crore in the ABG Shipyard money laundering case is a significant development in the ongoing investigation. The agency's efforts to recover the diverted funds and bring the perpetrators to justice are crucial in upholding the integrity of the financial system and protecting the interests of the banks and investors.