Rotomac pen promoter Vikram Kothari faced heat of central agencies after the CBI as well as the ED registered separate cases against him and his company for allegedly swindling of Rs 3,695 crore from seven banks from 2008.
The CBI registered a case after receiving a complaint from Bank of Baroda against Kanpur-based Rotomac Global Pvt Limited, its director Vikram Kothari, his wife Sadhana Kothari, and son Rahul Kothari and unidentified bank officials.
Initially, the alleged scam was estimated to be of Rs 800 crore but after the CBI started to probe into the accounts of the company, it was found that the company had allegedly taken loans from Bank of India, Bank of Maharashtra, Indian Overseas Bank, Union Bank of India, Allahabad Bank and Oriental Bank of Commerce were taken.
The CBI alleged that the accused had cheated a consortium of seven bank by siphoning off bank loans to the tune Rs 2,919 crore.
The total outstanding amount along with interest and liabilities for the company were pegged at Rs 3,695 crore, the CBI alleged.
Immediately after registering the case, the CBI carried out searches at three locations in Kanpur which included Kothari's residence and office premises.
While making clear that no arrests have taken place in the case so far, CBI spokesperson Abhishek Dayal said Kothari, his wife and son were being examined by the CBI.
According to the CBI officials, the company allegedly used two modus operandi for siphoning off the loans secured from consortium of banks from 2008 onwards.
Credit sanctioned and loan disbursed to the company was utilised for the purposes, other than executing export orders.
The CBI alleged that the credit sanctioned for a particular export order was diverted to a different offshore company and later the money was remitted back into the Kanpur-based company without executing an export order.
In other cases, money disbursed by the banks for procurement of goods for export was not utilised and no export order was executed ever. This is misappropriation of the fund, criminal breach of trust and violation of FEMA guidelines, the officials sid.
Most of the transaction of this companies is with limited number of buyers, sellers sister companies and subsidiary of this company.
It is alleged that the company was working for interest rate differential in local and foreign currency and even fake documents were submitted to induce banks to advance money, the CBI alleged.
In a parallel action, the Enforcement Directorate, a probe unit that functions under finance ministry, also registered a case of alleged money laundering against Rotomac pens' promoters.
The ED also named promoter of Rotomac pens, Vikram Kothari, and his family members in connection with an alleged bank loan fraud of Rs 3,695 crore.
The agency registered the case under the Prevention of Money Laundering Act (PMLA), after studying the CBI FIR that was registered yesterday.
The ED, the officials said, would probe if the funds obtained through the alleged fraud were laundered and if the proceeds of the crime were subsequently used by the accused to create illegal assets and black money.
This is the second major financial scam to break out after the sensational Rs 11,400 crore fraud allegedly committed by billionaire jewellery designer Nirav Modi and his uncle Mehul Choksi, who is a promoter of Gitanjali group of companies.
Both fled the country before the Punjab National Bank realised the depth of the alleged crime.
Watch video: CBI grills Vikram Kothari in connection with Rotomac money laundering case