Rotomac Bank Fraud Case

The CBI has booked Kanpur-based Rotomac Global and its directors for Rs 750.54 crore for alleged fraud in Indian Overseas Bank, officials said. The company, which was in the business of writing instruments, has a total outstanding of Rs 2,919 crore against a consortium of seven banks led by Bank of India in which Indian Overseas Bank has an exposure of 23 per cent. The agency has booked the company and its Directors - Sadhna Kothari and Rahul Kothari - under IPC sections related to criminal conspiracy (120-B) and cheating (420), besides various provisions of the Prevention of Corruption Act. The company is already facing multiple investigations by the CBI and the Enforcement Directorate on the basis of complaints from consortium members. In its complaint to the CBI, now a part of the FIR, the Indian Overseas Bank alleged that the company was sanctioned a non-fund-based limit of Rs 500 crore on June 28, 2012. The account was declared a non-performing asset on June 30, 2016, with an

The CBI on Tuesday registered a fresh FIR against Kanpur-based Rotomac Global for allegedly cheating Punjab National Bank to the tune of over Rs 93 crore through loan default, officials said. The central agency has also named the company's directors Rahul Kothari and Sadhna Kothari as accused in the case registered under IPC sections related to criminal conspiracy and cheating, and provisions of Prevention of Corruption Act, they said. The CBI has alleged that directors Vikram Kothari (now deceased) and Rahul Kothari, along with others, acted with "dishonest intention" to defraud the bank by presenting wrong and false statements for book debts, stock statements and other financial papers. The accused projected fake transactions as genuine, knowing fully well that they are thereby causing wrongful loss to the bank, thereby cheating the bank and the public at large, the FIR by the CBI said. Rotomac group companies are already facing two separate CBI investigations related to bank fra

Kothari, a whole-time director of the pen company Rotomac, and the Mumbai-based company's bosses were remanded to SFIO custody by a magistrate court

The ED had filed a criminal case under the PMLA in this instance in February, based on a CBI FIR