Rishi Agarwal Biography, Wikipedia, Age, Career, Family, 22842 Crore Scam | Who is ABG Shipyard Ltd. Chairman Rishi Agarwal? Bio, Wiki

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Who is Rishi Agarwal?

Rishi Agarwal is the former Chairman of ABG Shipyard Ltd. and has been booked for a scam of Rs. 22,842 Crore.

ABG Shipyard: All You Need To Know About ₹ 22,842 Crore Loan Scam

The Central Bureau of Investigation (CBI) on Thursday said that it recently questioned Rishi Agarwal, former chairman and managing director of ABG Shipyard Limited, in connection with its probe into the ₹ 22,848 crore alleged banking fraud, said to be India’s biggest. Sources said the agency searched his house on Saturday after which summons were issued.

The agency is investigating the company and its former directors – Rishi Agarwal, Santhanam Muthuswamy and Ashwini Kumar.

The CBI swung into action after registering the FIR on February 7 on a complaint filed by State Bank of India (SBI) on August 25, 2020.

Rishi Agarwal R. 22,842 Crore Fraud Case

According to CBI, ABG Shipyard and its directors are accused of cheating 28 banks (the consortium is led by SBI) to the tune of 23,000 crore. The agency said that ABG Shipyard availed loans since 2005, but due to non-payment of dues, the account turned non-performing assets (NPAs) in 2013.

A forensic audit carried out by Ernst and Young in 2019 revealed that the funds were diverted to other related companies, said the CBI, adding that loans were allegedly used for investments through overseas subsidiaries.

The investigating agency said that these loans weren’t used for the purpose availed for, thus violating the agreements.

The CBI action

The SBI first filed a complaint on November 8, 2019 on which the SBI sought some clarifications on March 12, 2020.

The bank filed a fresh complaint in August that year. After “scrutinising” for over one- and-a-half-years, the CBI acted on the complaint, filing the FIR on February 7 this year.

In its complaint, the SBI said that global downturn in economy and the shipbuilding sector had set off the crisis, reported news agency Press Trust of India. It had “impacted the shipping industry due to fall in commodity demand and prices and subsequent fall in cargo demand”.

Banks that were cheated by ABG Shipyard

According to a complaint by the State Bank of India, the company owes ₹ 2,925 crore to the bank, ₹ 7,089 crore to ICICI Bank, ₹ 3,634 crore to IDBI Bank, ₹ 1,614 crore to Bank of Baroda, ₹ 1,244 to Punjab National Bank (PNB) and ₹ 1,228 crore to Indian Overseas Bank (IOB). The funds were used for purposes other than for which they were released by banks, the CBI said.

A separate money laundering investigation has also been started against them by the Enforcement Directorate (ED).

Rishi Agarwal Biography, Wiki

Rishi Agarwal Biography Wikipedia
Rishi Agarwal

Rishi Kamlesh Agarwal, the former Chairman and Managing Director (MD) of ABG Shipyard Ltd, is booked by the CBI for criminal conspiracy, cheating, criminal breach of trust, and abuse of official position under the IPC and the Prevention of Corruption Act. Also, he is the MD of Vadaraj Energy Ltd, Gujarat.

This is the biggest ever bank fraud case registered by CBI. ABG Shipyard Ltd is known for shipbuilding and repair. It has its yards in Gujarat’s Surat and Dahej. The company can build vessels up to 18,000-deadweight tonnage at the Surat shipyard and a 1.20-lakh deadweight load at the Dahej unit.

ABG was born when Agarwal bought a small shipbuilding facility called Magdala Shipyard Pvt Ltd, a repairer of small boats. The ambitious Agarwal set up building scale and sophistication. By 2005, the shipyard was capable of building bulk carriers, specialised defence vehicles, and other big ships.

2011, ABG bagged an Rs. 970 crore order from the Indian Navy to build two cadet training ships.

But he was deep in debt. In 2016/17, revenues were Rs 16.40 crore, while debt was Rs10,000 crore. A restructuring saw bankers take control in 2016 by converting debt into equity. By the time it came up for resolution, Agarwal no longer had anything to do with his company.

A written complaint dated 25.08.2020 was received from Shri Balaji Singh Samanta, DGM, State Bank of India, SAM Branch, The Arcade, II Floor, World Trade Centre, Cuffe Parade, Colaba, Mumbai-400005, against the Company M/s ABG Shipyard Ltd is having a registered office at Magdala Village, Off Dumas Road, Surat-395007, Gujarat.

Besides Agarwal, the agency has also named the then Executive Director Santhanam Muthaswamy, Directors Ashwini Kumar, Sushil Kumar Agarwal, Ravi Vimal Nevetia, and another company ABG International Pvt Ltd, in the case.

The company was sanctioned credit facilities from 28 banks and financial institutions where the SBI had exposure of Rs 2468.51 crore. The other banks include:


ICICI Bank (Rs 7,089 crore).
IDBI Bank (Rs 3,634 crore).
Bank of Baroda (Rs 1,614 crore).
PNB (Rs 1,244 crore and IOB (Rs 1,228 crore).

The consortium of 28 banks was led by ICICI Bank.

Agarwal is the nephew of Ruia brothers Shashi and Ravi, who recently confirmed their multi-billionaire status when their 33% holding in Hutchison Essar was valued at over $6 billion after Vodafone bought the company. ABG operates from a shipyard close to Essar’s Hazira plant in Gujarat.

Rishi Agarwal Education

Rishi Agarwal has completed his MBA from Purdue University. 

Rishi Agarwal Net Worth

In 2016-17, his revenues were Rs16.40 crore, while debt was Rs10,000 crore.

Rishi Agarwal FAQ’s

Who is Rishi Agarwal?

Rishi Agarwal is the former Chairman of ABG Shipyard Ltd. and has been booked for a scam of Rs. 22,842 Crore.

How old is Rishi Agarwal?

Rishi Agarwal is currently in his 50s.

Why is Rishi Agarwal booked by CBI?

Rishi Kamlesh Agarwal, the former Chairman and Managing Director (MD) of ABG Shipyard Ltd, is booked by the CBI for criminal conspiracy, cheating, criminal breach of trust, and abuse of official position under the IPC and the Prevention of Corruption Act. Also, he is the MD of Vadaraj Energy Ltd, Gujarat.

Which banks were involved in Rishi Agarwal’s scam?

According to a complaint by the State Bank of India, the company owes ₹ 2,925 crore to the bank, ₹ 7,089 crore to ICICI Bank, ₹ 3,634 crore to IDBI Bank, ₹ 1,614 crore to Bank of Baroda, ₹ 1,244 to Punjab National Bank (PNB) and ₹ 1,228 crore to Indian Overseas Bank (IOB). The funds were used for purposes other than for which they were released by banks, the CBI said.

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