CBI grills Rotomac directors, files case over loan default amounting to Rs36.95b

CBI raids several locations in Kanpur over loan default by Rotomac company’s chief Kothari, his wife and son

New Delhi/Kanpur: The Rotomac loan default case would touch Rs36.95 billion, including interest, according to the Central Bureau of Investigation (CBI) officials who are looking into the case.

The CBI on Monday raided several locations in Kanpur in connection with the loan default by the Rotomac Pen company’s chief Vikram Kothari, his wife and son, an official said. A case was also filed against the three and some unidentified bank officials on Sunday night.

Earlier, it was stated by investigator that the default would amount to Rs8 billion. However, in the complaint filed by the Bank of Baroda, it was alleged that a consortium of seven banks had been cheated by Kothari and his company by siphoning off Rs29.19 billion taken as loan. The total outstanding amount, along with interest, would amount to Rs36.95 billion, a CBI official, who did not want to be identified, said.

Kothari is the Chairman and Managing Director of the Kanpur-based Rotomac Global Private Limited which had obtained the money from the consortium of banks. His wife Sadhana and son Rahul are directors of the company.

The CBI also sealed a residential premises and an office of Rotomac directors in New Delhi.

Coming close on the heels of the Rs113 billion Punjab National Bank’s fraud, the Rotomac case that surfaced on Sunday had fanned speculations that Kothari too, might try and flee the country.

However, the CBI could reach Kanpur and question the three accused. The CBI also raided three other locations in Kanpur related to the case, an official said.

The banks involved in the loan default, apart from BoB are Bank of India, Bank of Maharashtra, Indian Overseas Bank, Union Bank of India, Allahabad Bank and Oriental Bank of Commerce.


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