India’s biggest bank fraud, Rise and fall of Gujarat’s ABG Shipyard - Gujarat model proved fakthu scam model - Modi's Ache din Ayega

[bhaigan]

On a complaint by State Bank of India, the CBI recently booked ABG Shipyard, its directors, and ABG International Pvt Limited for allegedly causing losses of Rs 22,842 crore to a consortium of 28 banks.

5 years, 28 banks, Rs 23,000 cr debt

 

Once considered a powerhouse in shipbuilding with an order book of Rs 16,600 crore, Gujarat’s ABG Shipyard is now under probe for fraud. On a complaint by State Bank of India, the CBI recently booked ABG Shipyard, its directors, and ABG International Pvt Limited for allegedly causing losses of Rs 22,842 crore to a consortium of 28 banks.

A decade of losses

Until the end of 2012-13, ABG Shipyard was thriving, with a net profit of Rs 107 crore. The slide started the following year, with a loss of Rs 199 crore. By March 2016, its net loss had mounted to Rs 3,704 crore, up from Rs 897 crore in 2014-15. Revenues had fallen to Rs 37 crore, from Rs 401 crore a year earlier. The company undertook a debt restructuring exercise in 2013-14. In its annual report that year, it cited cancellation of new ship/vessel orders, reduced lending from banks, high borrowing cost, low capacity utilization of the Dahej shipyard in Surat, and the expiry of the Centre’s shipbuilding subsidy scheme in 2007.

An independent auditor’s report, annexed with ABG Shipyard’s annual report for 2015-16, mentions legal proceedings by some creditors, and a show cause notice from the Directorate of Revenue Intelligence, Mumbai that alleged fraud by ABG employees. The report said the auditor and the management had not noticed or reported any fraud.

 

Growth

Registered with the Registrar of Companies in Ahmedabad, ABG Shipyard Ltd was incorporated as Magdalla Shipyard Pvt Ltd in March 1985. It became ABG Shipyard Pvt Ltd in May 1995 and ABG Shipyard Ltd in June 1995.Between 1990, when it delivered its first ship, and 2013, it built over 165 ships, 80% of them for international customers. In 2000, it got its first government order to build two inceptor boats for the Coast Guard; in 2011, the Centre gave it a license to build defense ships including submarines.

By February 2012, ABG Shipyard had an order book of Rs 16,600 crore. Its main shipyard was spread over 35 acres on the banks of the Tapi in Magdalla, Surat. It later set up a second shipyard in Dahej, Bharuch, 150 km from Magdalla, following an MoU with Gujarat Maritime Board for long-term lease of land and waterfront usage.

Acquisitions & subsidiaries

ABG Shipyard acquired UAE-based Cross ocean Ship Repair Limited, FZE, Fujairah on January 22, 2006, but sold it off in March 2008. In 2007-08, ABG acquired Vipul Shipyard adjacent to its Magdalla shipyard. A key acquisition was of Western India Shipyard Limited (WISL), Goa, through a deal with ICICI bank and other lenders. ABG held a 60.15% controlling stake in WISL, which repaired ships of the Navy, Coast Guard and private players. It recorded its highest turnover of Rs 114 crore in 2010-11, before slipping into the red in 2012-13. The company suspended ship repair operations in 2016. In 2015-16, its promoters decided to disinvest from it.

ABG International Pvt Ltd was the holding company. ABG Shipyard had a controlling stake in Eleventh Land Developers Pvt Ltd, ABG FPSO Pvt and Vipul Shipyard. At various points, it had over 55 subsidiary companies.

Seizure and liquidation

In 2007, ABG Shipyard had inked a Rs 50-crore MoU for a maritime university. On Monday, the Gujarat Industrial Development Corporation (GIDC) on Monday took possession of 1.21 lakh sq m land allotted in Icchapore, Surat, for the university. “We have taken back possession of land as it was not used for the purpose allotted to the company,” GIDC vice-chairman M Thennarasan said.

The plot had been allotted at Rs 700/ sq m, 50% of the prevailing premium price of Rs 1,400/ sq m, a concession red-flagged in the CAG report tabled in the Assembly in 2014. The CAG had also found the Gujarat Maritime Board (GMB) not taking action against the shipbuilder for non-payment of lease rental. GMB officials confirmed that dues from ABG Shipyard are still pending.

In an order on April 25, 2019 in ICICI Bank vs ABG Shipyard, the National Company Law Tribunal (NCLT) ordered the liquidation of the company under Section 33 of the Insolvency and Bankruptcy Code. In December 2020, the NCLT’s Ahmedabad bench allowed the liquidator to carry out private sale of assets, after an auction found no bidders. Apart from five ships, the assets being liquidated are 92,000 sq m residential land in Bharuch and Gaviar, 4.14 lakh sq m industrial land near Magdalla port, and 27 acres agricultural land in Diamond Harbour, Kolkata.

[bhaigan]

Halwa lanti valu POSCO poyindi tokka poyindi ani edupulu 

this is what happens when capitalistic type of model is welcomed, emi undi loss vasthe chalu simple ga IP petti 10gestharu

akkada unna paisalu evaridi prajala dhe kada

 

[Android_Halwa]

Odhu ra ayya ie lolli…

Modi resign cheyalsinde isari…

A thriving business once goes out of business and accumulated massive losses and eventually indulged in bank fraud, deeniki kuda Modi ae ante…kastame..! 

asalu case endi, katha endi….CBI olla ke inka sakkaga telvale…kani DB la judgement kuda vachesindi..

[Android_Halwa]

Just now, bhaigan said:

Halwa lanti valu POSCO poyindi tokka poyindi ani edupulu 

this is what happens capitalistic type of model is welcomed, emi undi loss vasthe chalu simple ga IP petti 10gestharu

akkada unna paisalu evaridi prajala dhe kada

 

Air India mida 20 years la more than one lakh crores lost…

mari danikem antaru ? 

[bhaigan]

6 minutes ago, Android_Halwa said:

Air India mida 20 years la more than one lakh crores lost…

mari danikem antaru ? 

government policies are not great in India, they can't run PSU like private firm

Air India loss ki each and every lafoot MLA's , MP's and so on till president were given subsidiaries from government that could be another reason for the loss

do you know world's largest airline's like Emirates or Africa's largest airline Ethiopian is owned by government ?

[bhaigan]

6 minutes ago, Android_Halwa said:

Odhu ra ayya ie lolli…

Modi resign cheyalsinde isari…

A thriving business once goes out of business and accumulated massive losses and eventually indulged in bank fraud, deeniki kuda Modi ae ante…kastame..! 

asalu case endi, katha endi….CBI olla ke inka sakkaga telvale…kani DB la judgement kuda vachesindi..

Modi CM ga unnapudu velaga pettina policies ae ivanni LOL

[huma]

[Android_Halwa]

32 minutes ago, bhaigan said:

government policies are not great in India, they can't run PSU like private firm

Air India loss ki each and every lafoot MLA's , MP's and so on till president were given subsidiaries from government that could be another reason for the loss

do you know world's largest airline's like Emirates or Africa's largest airline Ethiopian is owned by government ?

Govt policies are not so great but you want PSU’s to be run by government. 
 

Air India was in profits as long as JrD was the chairman. He ran it the way an airline was supposed to be run as. Air India fate changed after Babu’s started running the airline. You need to check facts. Prati daniki Mp and MLA’s ante saripodu..

Lufthansa has govt stake…Do you know recently $10billion was infused to keep this airline flying. 
 

Emirates is govt owned but being run for profit. Tim Clark is running this airline. Etihad is also govt owned, Do you know where it stands now ? So does Qatar. These airlines are run by infusing funds and changing structure when needed. And they get cheap oil and no taxes to run.

Better don’t quote these examples. 

[bhaigan]

50 minutes ago, Android_Halwa said:

Odhu ra ayya ie lolli…

Modi resign cheyalsinde isari…

A thriving business once goes out of business and accumulated massive losses and eventually indulged in bank fraud, deeniki kuda Modi ae ante…kastame..! 

asalu case endi, katha endi….CBI olla ke inka sakkaga telvale…kani DB la judgement kuda vachesindi..

CBI ki enduku telavadu

5 years nundi ee scam danda nadusthune undi kada

CBI issues lookout circulars against ABG Shipyard directors

[bhaigan]

1 minute ago, Android_Halwa said:

Govt policies are not so great but you want PSU’s to be run by government. 
 

Air India was in profits as long as JrD was the chairman. He ran it the way an airline was supposed to be run as. Air India fate changed after Babu’s started running the airline. You need to check facts. Prati daniki Mp and MLA’s ante saripodu..

Lufthansa has govt stake…Do you know recently $10billion was infused to keep this airline flying. 
 

Emirates is govt owned but being run for profit. Tim Clark is running this airline. Etihad is also govt owned, Do you know where it stands now ? So does Qatar. These airlines are run by infusing funds and changing structure when needed. And they get cheap oil and no taxes to run.

Better don’t quote these examples. 

1 lakh crore lo kam se kam 50K crore aa babu's subsidaries ke velli untadi

Why didnt Indian union government didnt changed the structure of Air India when needed ?

[Android_Halwa]

35 minutes ago, bhaigan said:

Modi CM ga unnapudu velaga pettina policies ae ivanni LOL

Anduke kada…let’s get rid of Modi and get RaGa back to the business.

Have you heard of DLF ? Kushal Pal Singh…used to be India’s second richest person by 2004…by 2014, his name is also not heard any where. What do you think might have happened ti an empire which has built NCR..

[BeerBob123]

Over to @JackSeal

[Android_Halwa]

1 minute ago, bhaigan said:

CBI ki enduku telavadu

5 years nundi ee scam nadusthundi

CBI issues lookout circulars against ABG Shipyard directors

Thokka le kaka….already funds epudo Desham daati poinayi…ipudu ochi directirs ni patukuni peekedi emi ledu…assets valuation and seize..liquidation and edo migilina danitho saripetukovadame

Interestingky, the biggest hit is to nationalized banks. This is what it happens when major banks are nationalized…

[bhaigan]

Just now, Android_Halwa said:

Thokka le kaka….already funds epudo Desham daati poinayi…ipudu ochi directirs ni patukuni peekedi emi ledu…assets valuation and seize..liquidation and edo migilina danitho saripetukovadame

Interestingky, the biggest hit is to nationalized banks. This is what it happens when major banks are nationalized…

ade kaka aa paisalu evadidhe, prajala dhe kada

ee paisalu malli vasulu cheyali ante SBI lanti prestigious bank's account lo fund's intha maintain cheyali ledante fine lu meeda fine lu vesi malli prajala nunche recovery chestharu

siggu leda modi ki 💦

[bhaigan]

Vijay Mallya

Nirav Modi

Mehul Chowksi

Lalit modi

anni mana Gujarat Animuthya le exccept Vijay Mallya