Fresh CBI case against Rotomac Group firm and others for ₹806.75-cr. bank fraud

The CBI has registered a fresh case against Kanpur-based Rotomac Global Private Limited, its promoter Vikram Kothari and other directors for allegedly cheating the Bank of India (BoI) of about ₹806.75 crore.

Among those named as accused are Mr. Kothari’s wife Sadhna and their son Rahul, as the company directors. This is the third case registered by the CBI against the Rotomac group entities.

The bank had extended various credit facilities to the company since 2002. The loan account was declared non-performing asset in September 2015.

The company, incorporated in 1992 as Rotomac Pens Private Limited, had diversified its business into various segments, including import/export and trading of food grains, heavy industrial equipment, various electronic items, polymers, scrap, gems and jewellery, coal and iron ore. It was renamed as Rotomac Global private Limited in 2008.

According to the FIR, the accused persons adopted various means to cheat the bank. The funds were directed to group companies, Crown Alba Writing Instruments India Private Limited and Rotomac Polymers Private Limited, and misappropriated. A forensic audit also revealed several financial irregularities in the account books.

The group had shown foreign exchange losses of ₹1,578.71 crore in 2013-14 and ₹159.50 crore in 2014-15. It raised a debit note of ₹1,273 crore on four linked parties and concealed the losses. Rotomac Exports Private Limited showed forex losses of ₹1,207.49 crore in 2013-14 and ₹110 crore in 2014-15, it is alleged.

In many cases, as alleged, the place of issue of Bill of Lading was China or Dubai, despite the fact that they were neither the loading port nor the discharging port. The company routed ₹1,226.51 crore through non-consortium banks in 2013-14 and ₹479.52 crore the next year.

In February, the CBI had booked Rotomac Exim (P) Limited, Mr. Kothari, his son and others for allegedly cheating the Allahabad Bank of ₹36.84 crore.

The first case was registered in February 2018 against Rotomac Global Private Limited, Mr. Kothari, his wife and their son in an alleged ₹3,695-crore loan default case. Mr. Kothari and his son were also arrested. They were accused of cheating a consortium of seven banks led by the BoI.

In May 2018, the agency filed the first chargesheet against Rotomac Global Private Limited, the Kotharis and three bank officials, accusing them of cheating a consortium member, Bank of Baroda, of ₹456.63 crore.

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Printable version | May 12, 2022 4:52:04 pm |