Rishi Kamlesh Agarwal, the founder and chairman of ABG Shipyard Limited, was imprisoned by the CBI on Wednesday in response to an alleged bank fraud of more than 22,842 crore, according to officials.

In accordance with the Indian Penal Code (IPC) and the Prevention of Corruption Act, the Central Bureau of Investigation (CBI) charged Mr. Agarwal, a former chairman of the firm, and others with criminal conspiracy, defrauding, criminal breach of trust, and misuse of public position.

The State Bank of India (SBI) has an exposure of 2,468.51 crore and is one of 28 banks and financial institutions that have approved credit facilities for the company, according to the officials.

According to a forensic audit conducted by Ernst and Young, the accused conspired with one another between 2012 and 2017 to engage in illicit actions such theft, misappropriation, and criminal breach of trust. The officials claimed that the money was used for purposes different than those for which the banks had released it. In July 2016 and 2019, respectively, the loan account was designated as a non-performing asset (NPA) and a fraud.