‘No export order was executed’

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 `3,695 crore from seven banks from 2008. The CBI alleged that the accused had cheated a consortium of seven bank by siphoning off bank loans to the tune `2,919 crore.

The total outstanding amount along with interest and liabilities for the company were pegged at `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 said.