Rotomac bank fraud: IT dept attaches 11 bank accounts

Rotomac Global Pvt Limited director Vikram Kothari

Initially, the alleged scam was estimated to be of Rs 800 crore but after the CBI started probe into the accounts of the Rotomac Global Private Limited, 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 father-son duo and Kothari's wife Sadhana were named in an FIR on Sunday following a complaint filed by the Bank of Baroda.

Investigative agencies and local police sprang into action immediately and sealed offices and residences of the businessman in various cities, including Kanpur in Uttar Pradesh and New Delhi.

Union Bank of India and Indian Overseas Bank also informed about certain lending to the group as consortium partners and that their loans had turned NPA in the past.

State-run lender Bank of Baroda on Tuesday clarified that it had an exposure of Rs 456.6 crore to Rotomac Global.

The complaint is signed by Brijesh Kumar Singh, deputy general manager and regional head of Bank of Baroda, Kanpur. All told, the amount including interest works out to Rs 3,695 crore.

The CBI's FIR said that the credit sanctioned for export order received from M/S Starcom Resources, Singapore, for supply of 15,700 MT of wheat was diverted to another company M/S Bargadia Brothers Pvt Ltd Singapore.

The investigation agency have said that the bank should have approached them in 2015 or in 2017 itself when the fraud had come to the surface.

Even when Kothari, his wife and his son are questioned by the CBI, Kothari refused to call it a scam, saying, "First of all, don't call it a scam". As per the allegations, in a clear violation of Fema (Foreign Exchange Management Act) Rules, he used loans availed for export to help his Kanpur-based company.

"It added: "... In other cases money disbursed for procurement of goods for export was not utilised for this objective and no export order was executed by the company. He allegedly created many fake companies by furnishing forged documents to seek loans from these banks.

Kothari allegedly cheated seven public sector banks of over Rs 3600 crore rupees by not making repayments of loans. Last year, BoB, after declared him a wilful defaulter for the loan default, and he moved the Allahabad high court seeking removal of its name.

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