The Enforcement Directorate (ED) will soon take up a money laundering probe into the allegation against Rotomac Global Private Limited and its directors that they cheated Bank of India (BoI) of about ₹807 crore.
Earlier this month, the CBI registered a case and invoked charges of corruption, cheating and criminal conspiracy against the accused persons, including the company’s promoter, Vikram Kothari, his wife Sadhna and son Rahul, who were its directors.
Based on the CBI case, the ED can initiate a probe under the Prevention of Money Laundering Act (PMLA) and attach the alleged proceeds of crime.
According to the FIR registered by the CBI, the bank had sanctioned various credit facilities to the company. However, owing to non-payment of dues, the loan account was declared a non-performing asset in September 2015.
The bank accused the company and its top functionaries of cheating, stating that funds were diverted to the other group entities. It conducted a forensic audit of the loan account, which also revealed various financial irregularities. Several claims made by the company were found to be incorrect. Many suspect transactions were also detected, as alleged.
The CBI had registered two cases involving the Rotomac group entities. It booked Rotomac Exim (P) Limited, Mr. Kothari, his son and others in February for allegedly cheating Allahabad Bank of ₹36.84 crore, while the first case was instituted against Rotomac Global Private Limited and others for alleged ₹3,695-crore “wilful” loan default case.
