State-owned Bank of Baroda (BoB) today said it has an exposure of Rs 456.6 crore in Rotomac Global, which is being investigated by CBI and the Enforcement Directorate in connection with an alleged bank loan fraud of Rs 3,695 crore.
In a filing to stock exchanges, the bank said the account of Rotomac Global was declared a non-performing asset (NPA) or bad loan by it on October 3, 2015 and it has made 100 per cent provisioning for the loan.
"The Bank has exposure of Rs 456.6 crore on M/s Rotomac Global Pvt Ltd under consortium arrangement with six other banks. The account was declared NPA by the bank on October 3, 2015 and has been 100 per cent provided for," the filing said.
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BoB was asked by stock exchanges for clarification regarding news reports related to Rotomac.
It further said that it has taken necessary "recovery measures" and filed proceedings in the Debt Recovery Tribunal in October 2016 and a decree in favour of the bank was granted in January 2017.
BoB has also initiated action against Rotomac Global under SARFAESI Act, the filing said.
After the enactment of Insolvency and Bankruptcy Code, the bank initiated corporate insolvency resolution process at NCLT Allahabad in June 2017 and the process is under way.
After the company and its directors were declared wilful defaulters, the bank had reported the fraud to the Reserve Bank and a complaint lodged with the CBI, ED and Directorate of Revenue Intelligence, the filing said.
After the CBI and ED, the Income Tax Department has stepped up action against Kanpur-based Rotomac group and its promoter, attaching 11 bank accounts in connection with an alleged tax evasion probe against them, source said.
The accounts in various bank branches in Uttar Pradesh were attached last night.
Union Bank of India in an exchange filing said it had sanctioned some loan to Rotomac in 2012 under a consortium lending with Bank of India (BOI) was the lead bank.
"The account has subsequently been classified as Non-performing asset (NPA) on October 1, 2016, as per IRAC norms of RBI and the required provision has been made as per requirements and recovery action also initiated," it said in response to clarity sought by exchanges.
Separately, Indian Overseas Bank (IOB) said that Rotomac has been banking with it for almost decade and was sanctioned loan under a consortium lending under BOI.
"The limits were backed by cash margin and immovable property as security and the guarantee of its promoters/directors and corporate guarantee. The account slipped to NPA on 30.06.2016. Bank started recovery action against the company and case was filed in DRT and decree was obtained by us," IOB said.
Based on this decree, the directors of the company were restrained from leaving the country and same was notified to Regional Passport Officer Lucknow and the Immigration Authorities in Delhi in July / August 2017, it said, adding the borrower was referred to NCLT by Bank of Baroda and was admitted on September 20, 2017.
"We have filed our claim with NCLT," it said.
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