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ED Registers Case Against Rotomac Pens Owner Vikram Kothari For Money Laundering

DIVYIA ASTHANA | 0
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| February 19 , 2018 , 15:40 IST

Hours after the CBI registered a case against Rotomac Global Pvt Ltd, and its directors Vikram Kothari, wife Sadhana Kothari, and brother Rahul Kothari on Monday, the Enforcement Directorate has registered a case against Rotomac owner Vikram under Prevention of Money Laundering Act.

According to the complaint, the conspirators cheated a consortium of 7 banks by siphoning bank loans worth a principal amount of Rs 2,919 crore. 

The total outstanding amount, along with interest liabilities for Rotomac company is Rs. 3695 crore, said CBI. The banks involved are - Bank of India, Bank of Baroda, Bank of Maharashtra, Indian Overseas Bank, Union Bank of India, Allahabad Bank and Oriental Bank of Commerce.

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The CBI on Monday morning had filed a case against Rotomac Pens owner Vikram Kothari for defaulting on loans worth Rs 800 crore.

On the complaint of Bank of Baroda, the CBI registered an FIR against Kothari and launched raids early morning on Monday at his Kanpur home and offices. Kothari and his wife and son are undergoing questioning by the CBI.

As reports of Kothari fleeing the country came in on Sunday, regarding the defaulted loans, he confirmed that he was in Kanpur.

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"I am very much in Kanpur with my family and my businesses are running," said Kothari, adding that he was in talks with the banks and had also held three meetings.

Although there was no immediate clarity on the amount of the loans, PTI reported that Kothari borrowed more than Rs 800 crore from 5 state-owned banks, including Allahabad Bank, Bank of India and Union Bank of India.

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Kothari reportedly took a loan of Rs 485 crore from Mumbai-based Union Bank of India and another loan of Rs 352 crore from Kolkata- based Allahabad Bank. Bank of Baroda, a consortium partner of the banks declared Rotomac Global Pvt Ltd a “wilful defaulter” through an order on February 27, 2017.

After the declaration of the company as a 'wilful defaulter', Rotomac moved the Allahabad High Court against the decision, to which the court said that the company had been wrongly declared a 'wilful defaulter'. The court added that the company had “offered assets worth more than Rs 300 crore to the bank since the date of default”.