CBI Files FIR Against Rotomac; Another Bank Fraud- A Scam Of Rs 3,695 Crore
On Sunday, all eyes were on another scam, when CBI filed an FIR against Rotomac Pens promoter Vikram Kothari for allegedly defaulting on loans worth Rs3,695 crore to nationalized banks. As per the reports, the scam began in 2008 and it amounted to “misappropriation of funds, criminal breach of trust and violation of FEMA guidelines”.
A CBI official stated that the case was registered late on Sunday night, upon a complaint by the Bank of Baroda. The complaint was against the company, Rotomac Global Pvt. Ltd, and its directors Vikram Kothari, Sadhana Kothari and Rahul Kothari.
After filling the FIR, the agency carried out searches across three places in Kanpur on Monday. CBI questioned all three accused directors individually. The residential premises are also sealed by CBI that belongs to Vikram Kothari. Along with his property, they also sealed an office of Rotomac directors in New Delhi.
As per the CBI complaint, it says that the Rotomac had cheated a consortium of seven banks. They cheated by syphoning off bank loans of Rs2,919 crore. When the interest was included, it came out of worth Rs3,695 crore.
CBI officials also revealed that Rotomac owed Rs754.77 crore to Bank of India. Out of the total amount Rs456.63 crore owed to Bank of Baroda, Rs771.07 crore to Indian Overseas Bank, Rs458.95 crore to United Bank of India, Rs49.82 crore to Bank of Maharashtra, Rs330.68 crore to Allahabad Bank, and Rs97.47 crore to the Oriental Bank of Commerce.
It was added that Rotomac had sidetracked the sanctioned loans to another fake company. Secretly, this money was routed back to Rotomac.
It is also said that the money was utilized for purposes other than executing export orders. It was found that the credit sanctioned from the export order received from Singapore for the supply of wheat was diverted to another company called Bargadia Brothers Pvt. Ltd. After sometimes, this amount was transferred to Rotomac’s account by Bargadia. CBI also claimed that there are also cases, where the money disbursed for procurement of goods for export was not utilized for this purpose. None of the export order was executed by the company.
However, large numbers of Rotomac’s transactions were with a limited number of buyers, sellers, sister concerns or subsidiaries of the company. The company is alleged to work for interest rate differential in local and foreign currencies and no genuine business transactions were being carried out.