Monday, 10 December, 2018

Rumours of Rotomac Pens' owner fleeing pulls down bank stocks

Rumours of Rotomac Pens' owner fleeing pulls down bank stocks Rumours of Rotomac Pens' owner fleeing pulls down bank stocks
Melinda Barton | 22 February, 2018, 16:23

Rotomac Pens owner Vikram Kothari, who is alleged to owe banks Rs 837 crore, is being questioned along with his wife and son by the Central Bureau of Investigation (CBI).

On the complaint of Bank of Baroda, the CBI registered an FIR against Kothari and launched raids early morning on Monday at his Kanpur home and offices.

The CBI is presently questioning Kothari, his wife and son in Kanpur. The company had declared itself a willful defaulter a year ago, on February 27, 2017. "This does not include the interest liabilities of these loan", an official with the CBI said.

Kothari said that he had gone nowhere and was very much in Kanpur. While the nation was managing to digest this thousands of crores fraud case, another defaulter Vikram Kothari, owner of Rotomac Pens Rs 800 crore of scam came forward.

According to News18, the banks involved are Allahabad Bank, Bank of India, Bank of Baroda, Indian Overseas Bank and Union Bank of India.

Following reports about loan defaults, the businessman had told the media that he had no intention to flee the country. Three meetings have taken place with the banks.

The Enforcement Directorate also registered a case against the Rotomac Pens Chairperson under the Prevention Of Money Laundering Act, according to ANI.

The banks have declared the loans as non-performing assets (NPA) and have initiated the process of taking over of the properties.

Vikram reportedly approached the National Company Law Tribunal (NCLT) after the banks started attaching his properties to recover their dues.

While no officer from any of the five banks was willing to go on record about the outstanding loans, Kothari refused to say how much money he owed to the banks.

The alleged loan scam comes close on the heels of a $1.8 billion loan fraud at the country's second-largest state-owned bank- Punjab National Bank by diamond merchant Nirav Modi and his uncle Mehul Choksi - promoter of the Gitanjali Group of companies.