Rotomac loan fraud swells to Rs 3,695 crore; CBI, ED register case
New Delhi/Kanpur: The Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) on Monday widened the ambit of their ongoing investigation in opposition to the promoters of the Rotomac World Non-public Restricted as agency’s alleged mortgage default case touched Rs three,695 crore.
The CBI earlier raided a number of areas in Kanpur in reference to the mortgage default by the Rotomac Pen firm’s chief Vikram Kothari, his spouse and son.
The central probe company had filed a case in opposition to the three and a few unidentified financial institution officers on Sunday night time.
The investigation into the alleged financial institution mortgage default was estimated to be round Rs 800 crore.
Nevertheless, within the grievance filed by the Financial institution of Baroda, it was alleged consortium of seven banks had been cheated by Kothari and his firm by siphoning off Rs 2,919 crore taken as mortgage. Complete excellent quantity, together with curiosity, would quantity to Rs three,695 crore, an unidentified CBI official mentioned, in line with ANI.
Kothari is the Chairman and Managing Director of the Kanpur-based Rotomac World Non-public Restricted, which had obtained the cash from the consortium of banks. His spouse Sadhana and son Rahul are administrators of the corporate.
The CBI additionally reportedly sealed residential premises and an workplace of Rotomac administrators in New Delhi.
Coming shut on the heels of the Rs 11,300 crore Punjab Nationwide Financial institution`s fraud, the Rotomac case that surfaced on Sunday had fanned speculations that Kothari too, may try to flee the nation.
Nevertheless, the CBI might attain Kanpur and query the three accused. The CBI additionally raided three different areas in Kanpur associated to the case, an official mentioned.
The banks concerned within the mortgage default, other than BoB are Financial institution of India, Financial institution of Maharashtra, Indian Abroad Financial institution, Union Financial institution of India, Allahabad Financial institution and Oriental Financial institution of Commerce.
ED recordsdata cash laundering case in opposition to Rotomac pens’ promoters
In the meantime, in a associated growth, the Enforcement Directorate (ED) additionally registered a cash laundering case in opposition to the promoters of Rotomac Pens.
The ED officers mentioned that the company had lodged the case below the Prevention of Cash Laundering Act (PMLA), after learning the CBI FIR that was registered yesterday.
The ED, the officers mentioned, would probe if the funds obtained by way of the alleged fraud had been laundered and if the proceeds of the crime had been subsequently utilized by the accused to create unlawful property and black cash.
That is the second main financial institution fraud to floor within the latest previous after the sensational Rs 11,400-crore Punjab Nationwide Financial institution (PNB) fraud, allegedly dedicated by diamond service provider Nirav Modi and his uncle Mehul Choksi, who’s a promoter of the Gitanjali Group of firms.
Each Modi and Choksi have fled the nation.
(With Company inputs)