The CBI on Thursday arrested Rotomac Global Private Limited promoter-director Vikram Kothari and his son in the alleged ₹3,695-crore “wilful” loan default case . They have been accused of cheating a consortium of seven nationalised banks.
The father-son duo was being questioned by the investigating team for the past two days at the CBI headquarters. Mr. Kothari’s wife, Sadhana, is also an accused in the FIR that was registered on February 18 following a complaint by the Bank of Baroda.
Diversion of funds
As alleged, since 2008-09, Mr. Kothari’s companies had taken a loan of ₹2,919 crore from a consortium led by Bank of India and comprising Bank of Baroda, Indian Overseas Bank, Union Bank of India, Allahabad Bank, Bank of Maharashtra and Oriental Bank of Commerce.
However, it is alleged, the directors cheated the banks by diverting funds so raised in conspiracy with certain bank officials. “There are instances where the credit sanctioned and disbursed to the company was used for purposes other than execution of the claimed export orders,” a CBI official had earlier said.
The FIR also cites a case in which the credit sanctioned for an export order purportedly received from Singapore for supply of wheat was diverted to another company named Bargadia Brothers Private Limited (Singapore). “The money was later remitted back to the account of Rotomac Pen, which amounts to round-tripping,” said the official.
Another modus operandi was to use the loans, disbursed on proposals for procurement of goods meant for exports, for undeclared purposes. In such cases, no export orders were allegedly executed by the company. It amounted to misappropriation, criminal breach of trust and violation of the Foreign Exchange Management Act, alleged the agency.
The agency has also alleged that most suspect transactions of the company were with a limited number of buyers, sellers, sister concerns and subsidiary companies.
