In order to cover up its multitude of failures, the Modi government always pulls off devious tricks that fool gullible Indians. The government that assumed power under Modi in 2014 has become a nuisance to sensible citizens, but it foxily keeps the general public involved in the game of Hindutva faith. In recent days, India’s biggest banking scam has come to light but the government has swept it under the carpet by making the attention of the media and everyone remain focused on the hijab issue to that extent that polarization between Hindus and Muslims has increased and reached the boiling point. People of different faiths who have lived together for centuries harmoniously have turned hostile and have started questioning the religious practices of one another.
The spark of hijab controversy that originated in the Udupi district of Karnataka has now spread to all parts of the country and abroad, and everyone seems to be caught up in it, consciously or unconsciously. In this state of affairs, there is no one to ask Modi who is responsible for the latest and the biggest banking scam? In the past, the Modi government has helped Vijay Mallya, Nirav Modi, and his uncle Mehul Choksi to flee the country after their high-profile economic crimes of defrauding banks worth several thousand crores of rupees were exposed. But, the hijab row has succeeded in diverting public attention from the latest banking scam. There was a time when the policy of divide and rule used to be followed for remaining in power, but the Modi government has modified it to ‘misguide and rule’ to implement its agenda.
Media reports indicate that ABG Group (ABG Shipyard Ltd.) has defrauded a consortium of nearly 28 banks for a total amount exceeding 22,000 crores of rupees. What is even more shocking is that the ABG group has broken the record of all banking scams that have so far occurred on Indian soil. According to ABP News, the CBI has taken cognizance of the scam by registering a case and has arrested eight persons in connection with it. The other concerned agencies are likely to take notice of the crimes shortly and commence their proceedings. As per the CBI, banks defrauded include State Bank of India, Bank of Baroda, Bank of India, IDBI Bank, Punjab National Bank and a leading bank in the private sector—ICICI Bank. The Gujarat-based ABG Group has not spared even the Life Insurance Corporation of India (LIC) from being hit by its defrauding tactics. The scam was first exposed on 20 August 2020 when a Deputy AGM of the State Bank of India lodged a complaint against ABG Shipyard Ltd. and ABG International Private Ltd., two of the sister companies of the same group. The ABG Group of companies are engaged in the business of Ship building and ship repairs and refurbishing.
The CBI has recently booked cases against the companies ABG Shipyard Ltd.; ABG International Private Ltd.; Rishi Kamlesh Agarwal, the former Chairman-cum-Managing Director of AGB Group; Santhanam Muthaswamy, former Executive Director of the Group; Ashwin Kumar, Sushil Kumar, Ravi Vimal Nevetia, directors of the ABG Group along with many public servants and unknown persons from different cities and towns. The offences for which cases have been registered fall under various sections of the Indian Penal Code (IPC) such as criminal conspiracy, cheating, criminal breach of trust, and abuse of official positions, and the Prevention of Corruption Act, and if convicted, each of the accused may face the punishment of a life sentence.
Modus Operandi of the Scam: The ABG Shipyard Ltd. availed huge loans and other credit facilities from banks and diverted the funds to its 98 sister companies in India and abroad. Overseas, the funds were utilized to purchase real estate and shares in the names of its affiliate companies, personal names, and also distributed to some of the relatives and friends of the company directors. Flouting all rules and regulations, funds were transferred from one subsidiary of the company to another, and mere adjustment entries were effected as window dressing to hide the illegalities behind the transactions. Some of the ships built by the group were sold abroad, but loans to the banks were not repaid out of the sale proceeds. According to the FIR, the proportion of fraud suffered by prominent banks in the consortium and other financial institutions in the total scam of 22842 crore rupees are as follows: ICICI Bank—7089 crores; IDBI Bank—3639 crores; State Bank of India—2925 crores; Bank of Baroda—1614 crores; Exim Bank—1327 crores; Punjab National Bank—1244 crores; Indian Overseas Bank—1244 crores; Bank of India—719 crores; LIC—136 crores. This scam has not developed overnight but progressed between 2012 and 2017, but all the concerned vigilant authorities had closed their eyes to it. The CBI has raided 13 locations after registering a case and has seized several documents related to the financial irregularities. As investigations proceeds, the names of several bank officials, more public servants, and some reputed politicians may come to light. Will the Modi government allow the CBI to continue its investigation in full honesty? It is doubtful. There is a general opinion that whenever direct or indirect involvement of his government or politicians of his party or funders to his political party come to light in the scam investigation or whenever competency or performance of his government is called into question, Modi government could trigger some controversial issue to keep the society enmeshed in it to avoid public rage. This is amply clear from the current hijab controversy unleashed at a time when a banking scam of the greatest magnitude in India had to be focussed on. Modi and his team have many arrows, darts, and javelins in the quiver. Time will tell when and which projectile weapon will be released from the string by them.
