ED Searches 26 Locations in ABG Shipyard

On Tuesday, the Enforcement Directorate (ED) conducted a major investigation at 26 ABG shipyards in Mumbai, Pune, and Surat in connection with a money-laundering investigation into the country's biggest bank fraud.

Surat-based ABG Shipyard and its former promoters are accused of duping a consortium of 28 banks of Rs 22,842 crore. According to an agency official, about 24 locations in Mumbai and one each in Pune and Surat have been covered, and these searches are to be continued on Wednesday. 

Law enforcement agency is investigating allegations of misappropriation of bank loan funds, the establishment of shell companies to clean public funds, and roles such as company executives and others.

Sources say the ED case was filed under various sections of the Prevention of Money Laundering Act (PMLA) after investigators studied the CBI complaint and audit report.

ABG has been accused of fraudulent consortiums of 28 banks led by ICICI Bank, which has the highest exposure at Rs 7,089 crore, IDBI Bank (Rs 3,639 crore), State Bank of India (Rs 2,925 crore), and Bank of Baroda (Rs 1,614 crore) and Punjab National Bank (Rs 1,244 crore).