CBI heat on ~2,919cr Rotomac loan default
BAD LOAN? Three premises raided in Kanpur after FIR; Kothari family questioned
NEW DELHI/KANPUR/LUCKNOW: Investigators from two federal agencies began questioning on Monday pen maker Rotomac’s director Vikram Kothari and his family members, fearing a fraud in the company’s default of loans of ₹2,919 crore borrowed from seven banks.
The Central Bureau of Investigation (CBI) filed a case at 4am against Kothari, his wife Sadhana and their son Rahul — all directors in Rotomac Global Private Limited — and unknown bank officials after a complaint from Bank of Baroda.
By the end of the day, the Enforcement Directorate (ED) too had j umped i nto t he fray, launching a money laundering investigation against the Kotharis.
The case comes on the heels of a ₹11,400-crore alleged fraud in Punjab National Bank (PNB) in which celebrity jewellery designer Nirav Modi and his uncle Mehul Choksi are accused. The alacrity with which the CBI and ED have launched their investigation into the Rotomac case highlights the government’s desire to prevent a repeat of the PNB case.
Kothari himself answered the phone when a Hindustan Times reporter tried to reach him on Sunday and later, in a face-to- face meeting, spoke on record amidst rumours that he had, like Modi and Choksi, fled the country. “I am very much in Kanpur with my family, running my business here,” Kothari said on Sunday. “So far as the issue of loans is concerned, I have been in talks with banks for long. Three meetings have taken place with the banks. The matter is pending with the tribunal,” he added.
The issue seems to be one of default, although Kothari has a problem with that definition too. Kothari was declared a defaulter over a year ago and an FIR was lodged by the officials of the Indian Overseas Bank (IOB) after his cheques worth ₹600 crore bounced, which Kothari denied. “Show me one cheque of mine that has bounced. This is slanderous. I believe in the judicial system,” he said.
An officer in the CBI seemed to think it could be more. He said that the Kotharis allegedly used fake documents and received credit for exports that they round-tripped through an offshore firm without actually carrying out a trade.
“The questioning of Kothari, his wife and son is on. The agency has also sealed a residential premises and an office of Rotomac directors in New Delhi,” a CBI spokesperson said on Monday. MUMBAI: A letter purportedly written by jeweller Nirav Modi, circulating on Whatsapp, claims that the ~11,000 crore liability cited by PNB in a loan fraud case is far higher than what is owed.
Mint couldn’t confirm the authenticity of the letter appar-