Rotomac bank fraud: CBI keeps heat on Kotharis, I-T dept freezes 11 accounts

The Kanpur-based group and its promoter, Vikram Kothari, is being probed by the CBI and the Enforcement Directorate in connection with an alleged bank loan fraud of Rs 3,695 crore, given by a consortium of seven banks.

The Central Bureau of Investigation (CBI) continued to question Rotomac promoter Vikram Kothari and his family members for the second day on Tuesday in connection with bank loan defaults to the tune of Rs 2,919 crore, CBI officials said.

CBI officials at the Rotomac Global Private Limited office at Mall Road in Kanpur on Monday. (PTI Photo)

On Monday, a CBI official who spoke on condition of anonymity said Kothari had borrowed money to trade in wheat, completely unrelated to his main business, pens, and, instead of actually trading in the commodity, had used the money for other purposes.

CBI and Enforcement Directorate (ED) quizzed the three directors of Rotomac, Vikram Kothari, his wife Sadhana and son Rahul , on Tuesday even as the income tax department attached 11 bank accounts connected to them, officials said.

Denying reports of Kothari’s detention, CBI officials claimed that he was only being questioned.

The CBI team left for Lucknow with Vikram Kand Rahul Kotahri on Tuesday evening.

Earlier in the day, the CBI team visited the Kotak Mahindra Bank branch on Mall Road with Sadhana, Rahul and his wife Archana.

A team of income tax officials also reached there to assist the CBI in examining the Kotharis’ bank account details.

People familiar with the matter said CBI seized documents and computers from Kothari’s factory, offices and residences .

A CBI team grilled the Kotharis for 17 hours on Monday after Bank of Baroda lodged an FIR alleging loan default of Rs 600 crore.

According to bank officials, Kothari was given loans by Indian Overseas Bank (Rs 1,000 crore), Bank of India (Rs 1,365 crore), Union Bank of India (Rs 485 crore), Bank of Baroda (Rs 600 crore), and Allahabad Bank (Rs 352 crore).

Meanwhile, ED officials also searched the premises of Mohan Steels in Dahi Chowki industrial area of Unnao on Tuesday. The steel mill was closed three years ago.

Kothari had reportedly invested in this company as well. The officials seized documents from the office on the mill’s premises.

ED sources said the officials were investigating if the money obtained from loans was laundered, used to create illegal assets, generated black money or illegally diverted to other businesses.