In a major development, CBI on Thursday arrested Vikram Kothari, the owner of Rotomac pens, news agency ANI reported. Vikram’s son Rahul Kothari has also been arrested by CBI officials. The Kanpur-based Rotomac group is being probed by the CBI and ED in connection with an alleged bank loan fraud of Rs 3,695 crore, given by a consortium of seven banks. The CBI had registered case against Rotomac, its director Vikram, his wife Sadhana and son Rahul Kothari and unidentified bank officials on a complaint received from Bank of Baroda.
It has been alleged in the complaint from Bank of Baroda that conspirators cheated a consortium of bank loans to the tune of Rs 3,695 crore. The ED subsequently registered a money laundering case against the accused. The ED will probe if the allegedly defrauded bank funds were laundered. Also, it will probe if these proceeds of crime subsequently used by the accused to create illegal assets and black money.
Earlier in the day, the Income Tax Department had confirmed that it has attached four immovable assets of the Rotomac group and its promoters in connection with an alleged tax evasion probe against them. The IT department said the properties, three in Kanpur and one in Ahmedabad, were provisionally attached on Wednesday. The IT department had already attached 14 bank accounts that were in various bank branches in Uttar Pradesh. The attachment of assets reportedly were carried out to recover outstanding tax demand from the Rotomac group, understood to be about Rs 85 crore.
Noteworthy, this is the 2nd major financial scam to break out after the sensational Rs 11,400 crore PNB fraud allegedly committed by billionaire jewellery designer Nirav Modi and his uncle Mehul Choksi. Both of them have left the country.
(This is a breaking news story; more details awaited)