Thursday, 20 September, 2018

Rotomac Pens owner Vikram Kothari and son Rahul Kothari held

Rotomac SCam Rotomac Pens owner Vikram Kothari and son Rahul Kothari held
Nellie Chapman | 23 February, 2018, 12:17

In a big breakthrough, the CBI on Thursday arrested Rotomac Pens owner Vikram Kothari, his son Rahul Kothari and two directors of the company for defrauding a consortium of banks of over Rs 3,695 crore, reports ANI.

The duo was produced before Additional Chief Metropolitan Magistrate Samar Vishal.

The CBI FIR allegedly stated that a consortium of seven nationalised banks gave loans worth Rs 2,919 crore to Rotomac Global Pvt Limited from 2008 onwards.

While the amount involved was initially pegged at Rs. 800 crore, the CBI later said the accused and their company owed Rs. 3,695 crore to the banks, including the interest.

Today's arrests of Kotharis come amidst ongoing raids on and seizure of assets owned by Nirav Modi and Mehul Choksi in the Rs 11,400 crore PNB scam.

The agency registered the case on February 18 after the Bank of Baroda lodged a complaint with the CBI alleging cheating, fraud and corruption.

The CBI had started investigating after a complaint registered by the Bank of Baroda. Kothari is the Chairman and Managing Director of Rotomac, while his wife and son are directors of the company. The bank requested authorities to confiscate the passports of Kothari and his family members.

The Income Tax department had also attached 14 bank accounts of the pen manufacturer as part of its tax evasion probe against it. Registering the money laundering case, they conducted searches in UP.

Mansukhlal Kothari, who established Pan Parag in 1973, left his empire for his sons Vikram and Deepak who divided the businesses.

The uninterrupted story of success gave ways to a contrary reality as Vikram Kothari finds himself stands accused of a bank loan default to the tune of thousands of crores.

It details that packing credit of Rs 15.50 crore, disbursed on January 25, 2012, to execute an export order of $4.18 million was split and remitted to Rotomac Global (Rs 10 crore) and M/S Madrid Implex (Rs 5.35 crore for purchase of jewellery).