ED regers money laundering case against ABG Shipyard

Enforcement Directorate (ED) on Wednesday regered a money laundering case against Gujarat-based shipping firm ABG Shipyard and its directors in connection with over Rs 22,800 crore loan default the company.
The ED case is based on the FIR regered the CBI on February 7 in which it has alleged that the company diverted loans handed to it a consortium of 28 banks, and used its ser concerns to round-trip funds and service other loans instead of using them for the purpose they were taken.
Sources said the ED case has named the same accused, including ABG CMD Rishi Agarwal, as in the CBI FIR.
“A case has been regered under provisions of the Prevention of Money Laundering Act. Further action will be taken as per law,” an ED official said.
The Indian Express had on Tuesday reported that the ED was examining documents related to the case in order to reger a money laundering case.
The CBI has already opened lookout circulars against the accused to prevent them from fleeing the country. Sources said the ED may follow suit.

The CBI has found that ABG allegedly used as many as 98 related companies in routing of funds, which ED officials say clearly point towards money laundering. The ED has powers to attach assets of companies and individuals involved in money laundering.
This is not the first time that the ABG Group has come under the ED scanner. In 2019, the agency had attached assets worth Rs 963 crore belonging to a cement manufacturing subsidiary of the group in connection with its money laundering probe into the affairs of the IL&FS.
As reported The Indian Express, the ED probe had found that third-party lending IFIN — the non-banking financial arm of the IL&FS Group – to companies such as the ABG Group had caused a loss of Rs 2,000 crore to IFIN.