The Central Bureau of Investigation (CBI) on Monday filed a case against Rotomac Pens owner Vikram Kothari and others, after early morning raids at his residence in Kanpur.
The First Information Report (FIR) copy which ANI has access to says the following:
- Five entities have been named in the FIR.
- Principal loan amount stands at Rs. 2919 crore
- Seven banks acted as consortium. These include:
Bank of India - Rs. 754.77 crore
Bank of Baroda - Rs. 456.63 crore
Indian Overseas Bank - Rs. 771.07 crore
Union Bank of India - Rs. 458.95 crore
Allahabad Bank - Rs. 330.68 crore
Bank of Maharashtra - Rs. 49.82 crore
Oriental Bank of Commerce - Rs. 97.47 crore
Allegation: By siphoning of banks loan through Rotomac
1. Credit sanctioned and disbursed to the company was utilised for purposes other than executing export orders.
2. Credit sanctioned for export order received from Singapore for supply of wheat was diverted to another cos Ms Bargadia Brothers Pvt Ltd Singapore. Later, it was routed to Ms Rotomac. In other cases, money disbursed for procurement of goods for export wasn't utilised for this purposes and no export order was executed by this company. Misappropriation of funds, breach of trust, violation of Federal Emergency Management Agency (FEMA). Most of the transactions of the company are limited with the buyers, sellers.
3. The cos was working interest rate differential in local and foreign currencies.
4. No genuine business transaction were being carried out.
5. Number of front companies were used for these transactions.
6. Cos submitted false and forged documents.
Disclaimer: No Business Standard Journalist was involved in creation of this content
