ROTOMAC OWNER, SON ARRESTED IN ₹3.6KCR LOAN DEFAULT CASE

NEWDELHI: The Central Bureau of Investigation arrested Rotomac promoter Vikram Kothari and his son Rahul Kothari on Thursday in connection with a ₹3,695crore loan default case, according to spokesperson of the agency.

The Kotharis were questioned for the fourth consecutive day on Thursday amid searches at their residences and office premises in Kanpur.

The CBI has filed a case against Kothari, his wife Sadhana and their son Rahul — all directors in Rotomac Global Private Limited — and unknown bank officials after a complaint from the Bank of Baroda.

The Enforcement Directorate has also launched a money-laundering investigation against the Kotharis. The Income Tax Department has attached four immovable properties of Kothari -- three in Kanpur and one in Ahmedabad, Gujarat.

A consortium of seven banks had extended multi-crore credits to the Kanpur-based firm and its related companies from 2008 onwards. Kothari is t he Chairman and Managing Director of Rotomac, while his wife and son are directors of the company.

The case comes on the heels of a ₹11,400-crore alleged fraud in Punjab National Bank (PNB) in which jeweller Nirav Modi and his uncle Mehul Choksi are accused.

Meanwhile, the Institute of Chartered Accountants of India (ICAI) chairperson said they will probe if the chartered accountants (CAS) associated with the Rotomac group followed standard norms.

“Action will be taken if the CAS are found to be involved in any irregularities,” chairman of the Central India Regional Council of ICAI (CIRC-ICAI) Deep Kumar Misra said.