Rotomac Scam: CBI Questions Vikram Kothari, Son In New Delhi

The Central Bureau of Investigation today questioned the owner of Rotomac Pens, Vikram Kothari, and his son Rahul at the agency's headquarters in New Delhi. The interrogation was done in connection with Rotomac Global Pvt.'s alleged loan default of Rs 3,695 crore to a consortium of seven state-owned banks, the officials said.

Kothari was earlier being questioned in Kanpur, where his company and residence were located, they said, adding that he and his son Rahul were called to the capital by the CBI, without elaborating on the reasons behind such a move.

Kothari, his wife Sadhana and son Rahul, all directors of Rotomac Global, had allegedly diverted the loan amount towards purposes other than what they were meant for, the officials said.

One of the banks in the consortium, the Bank of Baroda, had approached the CBI, requesting an FIR to be lodged against Kothari as it apparently feared that he might leave the country, they added.

The CBI had registered a case on Feb. 18, following the complaint.

Also Read: Bank Of Baroda Discloses Rs 456 Crore Exposure To Rotomac Global

Initially, the alleged scam was estimated to be worth Rs 800 crore, but after the CBI launched its probe into the accounts of the Rotomac Global, it was found that the company had allegedly taken loans from Bank of India, Bank of Maharashtra, Indian Overseas Bank, Union Bank of India, Allahabad bank and Oriental Bank of Commerce.

The CBI has alleged that the accused cheated a consortium of seven banks by siphoning off loan amounts to the tune of Rs 2,919 crore. The total outstanding amount for the company, along with interest and liabilities, is pegged at Rs 3,695 crore, the probe agency has alleged.

Yesterday, the Enforcement Directorate had notified all the land, sea and airports in the country to prevent the exit of Kothari and his family members from India, in connection with its money laundering probe.

The Income Tax department had also attached 14 bank accounts of the pen manufacturer as part of its tax evasion probe against it yesterday.

Also Read: PNB Fraud: New RBI Committee To Look Into Divergences, Frauds, Bank Audits