CBI Investigation: The Central Bureau of Investigation (CBI) has booked ABG Shipyard for cheating a consortium of 28 banks, resulting in a loss of over Rs 22,842 crore. The charges include diversion of bank funds, misappropriation, and criminal breach of trust. The agency has issued a lookout notice against the accused to prevent them from leaving the country3.
5. CONCLUSION
The ABG Shipyard scam is a case of ethical wrongdoing,
as it involved fraud, deception, misappropriation, and
breach of trust
- The scam caused huge losses to the banks, the public
exchequer, and the shareholders of the company
- The scam also damaged the reputation and credibility
of the Indian shipbuilding industry and the banking
sector
- The scam is being investigated by the CBI and the ED,
and the company is facing liquidation through an
insolvency process at the NCLT
6. Q).How it can be prevent
• *Banks affected by ABG shipyard scam*
• After the global economies crisis in 2008,the ABG shipyard company was severely affected
which resulted in cancelling orders with other companies around the world. We may wonder
how a few orders that were canceled would affect a hugely established company. Since Ships
that were ordered months or even years ago were canceled so this resulted in ABG having an
inventory in stock after the crisis also. But still the , the company managed to revover and earn
its highest revenues ever in 2011-12. After that everything went downfall after 2012 .This is
where the trouble began making losses.
• So between 2012-2017 this conduct had illegally obtained money from 28 banks amounted of Rs
22,842 crore of debt in total. This has brutally affected many banks from this scam.
