Lok Sabha Question No. 1900 (UNSTARRED), answered on 2022-03-14
Subject: Bank Fraud by ABG Shipyards
Ministry: FINANCE
Asked by: Hanuman Beniwal, Deepak Baij, Anto  Antony, Hemant Patil, Asaduddin Owaisi

## GOVERNMENT OF INDIA MNISTRY OF FINANCE

## LOK SABHA

## UNSTARRED QUESTION NO-+1900 ANSWERED ON 14/03/2022

## BANK FRAUD BY ABG SHIPYARDS

t1900. SHRI HANUMAN BENIWAL SHRI DEEPAK BAIJ SHRI ANTO ANTONY SHRI HEMANT SRIRAM PATIL SHRI ASADUDDIN OWAISI

Will the Minister of FINANCE be pleased to state:

- whether the biggest banking fraud of around Rs. 23,000 crores in the history of Indian banks by W/s ABG Shipyards has been reported recently;
- (6) if the details thereof; bank-wise; SO,
- whether the Government has inquired into the matter and has fixed responsibility in this regard;
- (d) if so, the details thereof including investigations made by the various agencies with outcome thereof; bank-wise; along
- the reasons for in reporting of fraud and of FIR the accused; and delay: filing against
- the steps taken by the Government to recover the amount and to book the accused?

## ANSWER

## THE MNISTER OF STATE IN TH MNISTRY OF FINANCE

## (DR BHAGWAT KARAD)

(a) to (): As per inputs received from banks, Ws ABG Shipyard Limited (ABGSL) has been sanctioned credit facilities under consortium arrangement led by ICCI Bank The performing asset by lender banks on 1.8.2013 and afterwards, and credit facilities were approved for restructuring under corporate debt restructuring (CDR) mechanism on 24.3.2014 by CDR empowered group: Subsequently, the member banks in the Joint Lenders (JLM decided to Emst & Limited Liability Partnership (EY) for conducting forensic audit in ABGSL. EY submitted its forensic audit report (FAR) on21.1.2019. Accordingly, in view of the of FAR the account of ABGSL principal exposure of Rs. 14,349 crore and interest accrued thereon, was declared as fraud by the lead bank on 25.4.2019. Meeting Young appoint findings having

Further; a complaint with Central Bureau of Investigation (CBI) was filed byState Bank of India (SBI) on 8.11.2019. Subsequently, in the JLM held on 17.1.2020, it was decided that SBI should file the complaint on behalf of all the consortium members  Accordingly, mandate was garered from all banks, with last mandate received on 25.8.2020. SBI being filed the revised complaint with CBI on 25.8.2020 and the final complaint based on further discussions; was filed on 14.12.2020. CBI has a First Information Report (FIR) the Company and its directors on 7.2.2022. registered against

Further; the lead bank had also filed an application with National Company Law Tribunals (NCLT) to initiate Corporate Insolvencyand Resolution Process (CIRP) of ABGSL, which was admitted on 1.8.2017 . Subsequently; the liquidation order for ABGSL was on 25.4.2019 by NCLT: passed

In addition to above, several measures have been taken by banks for recovery of dues, including, inter alia; of recovery suit in Debt Recovery Tribunal, issuance of look-out circular the promoters/ guarantors, application for initiating, insolvency proceedings the personal guarantors and declaration of company and its directors as wilful defaulters. filing filing against against

As per inputs  received  from Directorate of Enforcement;  bankl wise amount involved in fraud; as per FIR dated 7.2.2022 registered by CBI is at Annex entity

As per inputs received from Public Sector Banks, staff accountability has been conducted and no staff lapses / staff involvement in the said fraud has been observed in examination of post NPA staff accountability \_ post fraud re-examination of staff accountability:

X

## Annex referred t0 in Lok Sabha Unstarred question no. +1900, regarding Bank Fraud by ABG Shipyards

Details of fraud a8 per First Information Report (FIR) dated 7.2.2022 registered by Central Bureau of Investigation (CBI)

Source: Directorate of Enforcement

| Name of Bank                           | Amount involved in fraud (in crore Rs:)   |
|----------------------------------------|-------------------------------------------|
| ICIC Bank                              | 7,089                                     |
| IDBI Bank                              | 3,639                                     |
| State Bank of India (SBI)              | 2,925                                     |
| Bank of Baroda (BoB)                   | 1,614                                     |
| Punjab National Bank (PNB)             | 1,244                                     |
| eOriental Bank of Commerce (now PNB)   | 714                                       |
| Exim Bank of India                     | 1,327                                     |
| Indian Overseas Bank                   | 1,228                                     |
| Bank of India                          | 719                                       |
| Standard Chartered Bank                | 743                                       |
| Canara Bank                            | 40                                        |
| eSyndicate Bank (Now Canara)           | 408                                       |
| SBI, Singapore_                        | 458                                       |
| eDena Bank (now BoB)                   | 406                                       |
| eAndhra Bank (now Union Bank of India) | 350                                       |
| SBM Bank                               | 125                                       |
| Life Insurance Corporation of India    | 136                                       |
| DC Bank                                | 106                                       |
| PNB International                      | 97                                        |
| eLaxmi Vilas Bank (now DBS Bank)       | 61                                        |
| Indian Bank                            | 60                                        |
| Central Bank of India                  | 39                                        |
| Punjab & Sind Bank                     |                                           |
| Yes Bank                               | 2                                         |
| SICOM Ltd                              | 260                                       |
| IFCI Ltd                               | 300                                       |
| Phoenix ARC Pvt: Ltd. (SIB)            | 141                                       |