Vikram Kothari, Rotomac Pens MD, Arrested For Rs 800 Crore Loan Default

Published on 19 Feb 2018 by Tushar

Rotomac pens Vikram Kothari arrested

Vikram Kothari, chairman and MD of Rotomac Global Private Limited has been arrested, a few hours after he rubbished media reports claiming him to have left the country. 

The businessman had taken a loan of more than Rs 800 crore from state-run banks and was defaulting in paying them back. The Central Bureau of Investigation (CBI) was on Monday morning conducting searches at the Kanpur home and offices of Rotomac Pens promoter Vikram Kothari over unpaid bank loans, an agency spokesperson said.

The CBI had on Sunday registered an FIR against Kothari on the complaint of Bank of Baroda and raids started at around 4am, sources familiar with the development said.

“The agency investigators are conducting searches at three places in Kanpur after registering the case,” the spokesperson said, adding Kothari, his wife and son were also being questioned.

The CBI action comes within days Punjab National Bank unearthing a Rs 11,400 crore-fraud involving billionaire jeweller Nirav Modi and his uncle, Mehul Choksi.

There was no clarity on the loan amount but news agency PTI said Kothari borrowed more than Rs 800 crore from at least five state-owned banks, including Allahabad Bank, Bank of India and Union Bank of India.

Kothari had on Sunday denied reports he had fled the country after allegedly defaulting on payments.

“I am very much in Kanpur with my family and my businesses are running, “he said, adding he was in talks with the banks and had held three meetings.

Later in the evening he was also seen at a high-profile wedding.

He took a loan of Rs 485 crore from Mumbai-based Union Bank of India and a loan of Rs 352 crore from Kolkata- based Allahabad Bank, PTI said.

In 2017, Bank of Baroda, a consortium partner, declared Rotomac Global Pvt Ltd a “wilful defaulter”.

The company moved the Allahabad high court against the decision. The court said the company was wrongly declared a wilful defaulter despite having “offered assets worth more than Rs 300 crore to the bank since the date of default”.

Rotomac was declared a wilful defaulter through an order dated February 27, 2017.

Source- firstpost

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