After the CBI filed an FIR against Vikram Kothari for a loan default, a money laundering case has been registered against the promoter of Rotomac Pen company for an alleged bank loan fraud of Rs 3,695 crore. CBI on Monday conducted searches in Vikram Kothari residence and offices in Kanpur and also reportedly questioned his son and wife.
After the CBI filed an FIR against Vikram Kothari for a loan default, a money laundering case has been registered against the promoter of Rotomac Pen company for an alleged bank loan fraud of Rs 3,695 crore, according to a PTI report. Earlier, the Central Bureau of Investigation told PTI that the amount involved in Rotomac case is over Rs 2,919 crore, excluding interest. “It was alleged in the complaint that in the Rotomac case, conspirators cheated a consortium of 7 banks by siphoning off bank loans to the tune of 29.19 billion rupees (principal amount),” an official with the Central Bureau of Investigation reportedly told the news agency.
CBI on Monday conducted searches in Vikram Kothari residence and offices in Kanpur and also reportedly questioned his son and wife. CBI spokesperson Abhishek Dayal told PTI this morning that there were no arrests made as yet.
According to new reports, Vikram Kothari, the owner of Rotomac, had taken a loan of more than Rs 800 crore from various banks including Allahabad Bank, Bank of India, Bank of Baroda, Indian Overseas Bank and Union Bank of India, which had reportedly sanctioned the loans without rigorous protocol, and after compromised lending standards in favour of Kothari.
Following Nirav Modi’s reported exit from India following the India’s biggest banking scam in the country’s second biggest lender Punjab National Bank for a whopping Rs 11,400 crore, there were media speculations that Vikram Kothari too has fled the country. Following the development, Vikram Kothari sought to debunk media reports saying that he is very much in Kanpur. “I am a resident of Kanpur and I will stay in the city,” Vikram Kothari said in a video message.
Earlier, PTI reported that Vikram Kothari had taken a loan from two banks: Rs 485 crore from Union Bank of India, and Rs 352 crore from Allahabad Bank. Further, as per reports, Vikram Kothari failed to pay back either the interest or the loan, which was due at the end of one year. Last year, the public sector lender Bank of Baroda (BoB), had declared Vikram Kothari-led Rotomac Global Pvt Ltd as a “wilful defaulter,” following which Rotomac Pens moved the Allahabad High Court seeking removal of its name from the list of wilful defaulters.
Notably, Vikram Kothari’s company Rotomac was declared a “wilful defaulter” in an order dated February 27, 2017. PTI reports point out that a division bench involving Chief Justice D B Bhosle and Justice Yashwant Verma had passed the order on a petition filed by the company, which said that it has been wrongly declared a “wilful defaulter” by Bank of Baroda despite having “offered assets worth more than Rs 300 crore to the bank since the date of default.”