What’s the Rs 22,000Cr ABG Shipyard bank ‘fraud,’ who's involved, how it unfolded & why so late
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- Опубліковано 20 лют 2022
- #ABGShipyardScam #CutTheClutter
In episode 944 of CutTheClutter, Shekhar Gupta looks at the ABG Shipyard scam which has costed Indian banks, both public and private sector, around ₹22,000 crores and what led to it. What is possibly the largest bank fraud in India, we trace the history of the company, key players, promoters & the CBI inquiry into the same.
Brought to you by @KiaInd
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Read 'Yet another bank fraud: Bigger and different' here: www.business-standard.com/art...
Read 5 years, 28 banks, Rs 23,000 cr debt - how ABG Shipyard pulled off ‘India’s biggest bank fraud’ here: theprint.in/theprint-essentia...
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Shekhar, nobody will build a ship on loan.
Shekhar ji , shipping and shipbuilding are different . Building is about creating assets while shipping is about operations of the assets . ABG was in shipbuilding while Essar was in shipping . L&T is in shipbuilding since 2005 and not in shipping for the last 20 years .
This is also a failure of the loan underwriting process. Banks have to do their due diligence and have risk mitigation in place. If a debtor is unable to pay the debts, the debtor should go into bankruptcy.
Liked the line Champions of the list....lol
The moment you said Essar, i understood how deeply rotten this really was. Essar is the embodiment of all things fraudulent and dishonest in business. They have mastered the art of digging new holes to fill old ones and incidents like these are simply the law catching up with them.
The need of the hour is to revamp fundamental principles of corporate accountability, loading the Independent directors, internal and external auditors and the compliance officer / CS with enough teeth, incentives and penalty for the job they hold
I have sufficient banking experience and my observations are :-
HOW DOES IT MATTER WHEN CBI CAME INTO ACTION. MONEY WAS SLUSHED OUT OF INDIA BY 2013. EVERYONE RECEIVED THEIR CUT. THIS IS EASY TO DO IT WHEN THE RULING PARTY IS LOOTER.
Another champions of inflating order books was Bharti and pipava shipyard. In shipbuilding industry the machinery costs are high which inturn makes the owners greedy of inflating the order value & also the greed with the government subsidies. Another well researched article by Shekarji and his team.
What are the possibilities that
Yes SG, UNFORTUNATELY!
Thanks sir for CTC .....but main problem lies between political parties interfering with banking system..
I work in bank in corporate lending. Great analysis but some Factual clarifications.
If bank are giving such a big loan, they should atleast have one officer in their board meeting.
In scams like these, it is difficult to believe that some bankers themselves are not complicit. Harsh laws need to be brought in to punish those accused
I and my entire family have been running around for 3 weeks now to get housing loans but we haven't got any positive feedback.
I think in terms of political accountability we need to look at the time when loan was disbursed and whether there was any favouritism in sanctioning process.
Can we have half a CTC on Wriddhiman Saha's tweet, sports Journalism & BCCI nexus?
Thanks Shekharji for decluttering this.