Pen firm Rotomac owner booked for Rs 3,600 cr scam
The ED also registered a money laundering case against Kothari and his family members on the basis of CBI's FIR.
New Delhi: As the controversy over the PNB bank fraud rages, the CBI on Mon-day registered a case against another high-profile businessman, Rotomac pen promoter Vikram Kothari, over alleged swindling of Rs 3,695 crore bank loans. The scam, sources said, was earlier estimated at around Rs 800 crore.
The ED also registered a money laundering case against Mr Kothari and his family members on the basis of CBI’s FIR.
According to CBI sources, the case against Kanpur-based Rotomac Global Pvt Limited, its director Vikram Kothari, his wife Sadhana Kothari, and son Rahul Kothari and unidentified bank officials was filed on a complaint received from Bank of Baroda. Immediately after registering the case, agency sleuths conducted searches at three locations in Kanpur, including Kothari’s residence and office premises.
The CBI also sealed residential premises and an office of Rotomac directors in the national capital.
Talking to reporters here, CBI spokesperson Abhishek Dayal, said, “The agency has not made any arrests so far.”
He said Mr Kothari, his wife and son are being examined. Mr Kothari allegedly owes Rs 3,695 crore to Allahabad Bank, Bank of India, Bank of Baroda, Bank of Maharashtra, Indian Overseas Bank, Oriental Bank of Commerce and Union Bank of India, CBI sources said.
Bank of Baroda’s complaint to the CBI alleged that a consortium of seven banks had been cheated by Mr Kothari and his company by siphoning off Rs 2,919 crore taken as loans. The total outstanding amount, along with interest, amounts to Rs 3,695 crore.
Mr Kothari’s wife Sadhana and son Rahul are directors of the company. According to CBI sources, the company allegedly used two modus operandi for siphoning off loans secured from consortium of banks since 2008. Credit sanctioned and loan disbursed to the company was utilised for the purposes, other than executing export orders, they said.
The CBI alleged that the credit sanctioned for a particular export order was diverted to a different offshore company and later the money was remitted back into the Kanpur-based company without executing the export order.
Meanwhile, the ED registered a money laundering case against Kothari and his family members under the Prevention of Money Laundering Act (PMLA).
The ED, sources said, will 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.
This is the second major financial scam to come to light after the Rs 11,400 crore fraud allegedly committed by billionaire jewellery designer Nirav Modi and his uncle Mehul Choksi, who is a promoter of Gitanjali group of companies.