Rotomac loan default swells to Rs 3,695 crore, CBI files case against Vikram Kothari

NEW DELHI: The Central Bureau of Investigation (CBI) has filed a case against Rotomac Pens promoter Vikram Kothari and others for allegedly cheating a consortium of public sector banks of Rs 3,695 crore by defaulting on loans he had taken for his business.

Earlier, the loan default was estimated at Rs 800 crore+ but scrutiny of documents by CBI revealed that the amount is much larger.

After registering an FIR last night, CBI teams conducted raids at several locations in Kanpur and questioned Kothari, his son and wife on Monday.

CBI says that Rotomac cheated a consortium of 7 banks by siphoning off bank loans to the tune of Rs 2,919 crore, excluding interest. CBI says total outstanding amount, along with interest liabilities for M/s Rotomac, is Rs 3,695 crore.

According to the FIR copy, loan exposure of the banks are - Bank of India: Rs 754.77 crore, Bank of Baroda: Rs 456.63 crore, Indian Overseas Bank: Rs 771.07 crore, Union Bank of India: Rs 458.95 crore, Allahabad Bank: Rs 330.68 crore, Bank of Maharashtra: Rs 49.82 crore, Oriental Bank of Commerce: Rs 97.47 crore, news agency ANI reported.

There have been no arrests in the case yet, CBI spokesperson Abhishek Dayal categorically said. He said Kothari, his wife and his son are being examined by the CBI, which is conducting the searches.

The Enforcement Directorate (ED) has also registered a money laundering case against Kothari and his family members in connection with the alleged bank loan fraud of Rs 3,695 crore, officials said.

The case was filed under the Prevention of Money Laundering Act (PMLA), after studying the CBI FIR that was registered yesterday.

The ED, the officials said, would probe if the funds obtained through the alleged fraud were laundered and if the proceeds of the crime were subsequently used by the accused to create illegal assets and black money.

Seven banks cheated by Rotomac are - Bank of India, Bank of Baroda, Bank of Maharashtra, Indian Overseas Bank, Union Bank of India, Allahabad Bank and Oriental Bank of Commerce.

This is the second major financial scam to break out after the sensational Rs 11,400 crore fraud+ allegedly committed by billionaire jewellery designer Nirav Modiand his uncle Mehul Choksi, who is a promoter of Gitanjali group of companies. Both fled the country before the Punjab National Bank realised the depth of the alleged crime.

(With inputs from PTI)