Rotomac Pens MD Accused of Rs 3,695 Crore Fraud, Another CBI Raid


As the Central Bureau of Investigation (CBI) is dealing with the PNB fraud case involving Billionaire jeweler Nirav Modi, they now have another challenge to deal with – Rotomac Pens loan default case, allegation of defaulting on a loan of Rs 2,919 crore. The Central Bureau of Investigation (CBI) on Monday conducted searches at the Kanpur home and offices of Rotomac Pens promoter Vikram Kothari over unpaid bank loans of Rs 2,919 crore.

On the basis of a complaint registered by the Bank of Baroda, The CBI had filed an FIR on Sunday against directors Vikram Kothari, Sadhana Kothari and Rahul Kothari, and unknown bank officials for allegedly defaulting on a loan of Rs 2,919 crore. “It was alleged in the complaint that in the Rotomac case, conspirators cheated a consortium of seven banks by siphoning off bank loans to the tune of Rs 2,919 crore (principal amount),” an official from the CBI said. The total outstanding amount, along with interest liabilities in this loan default case, is Rs 3,695 crore. Mr. Vikram Kothari was seen attending a marriage function on Sunday. on the very next day at around 4 PM, The investigative agency began the raids at the Kanpur home and offices Mr. Vikram Kothari. The CBI spokesperson Abhishek Dayal said that there were no arrests in the case yet.He also added that Kothari, his wife and his son are being questioned by the CBI. There were some rumours spread earlier that he had fled the country after allegedly defaulting on payments. Denying the rumours of fleeing the country, Mr. Vikram Kothari said “First of all, it is not a scam. I am not going anywhere. I am an Indian citizen and am very much in my hometown. Though banks have declared my company as a non-performing asset (NPA), I am not a defaulter. The matter is still sub judice with the National Company Law Tribunal (NCLT). I am regularly in touch with the banks and am constantly cooperating with them. I availed the loans and will repay them soon.” Mr. Vikram Kothari has not repaid nearly 800 crore loans taken from five state-owned banks including Union and Allahabad.He took a loan of Rs. 352 crores from a branch of Allahabad Bank in Kolkata and Rs. 485 crores from a branch of Union Bank in Mumbai. Though it is not known how much money was borrowed from the other three banks.

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