CBI continues to quiz Kotharis, I-T dept freezes 11 bank accounts
KANPUR: The CBI continued to question Rotomac promoter Vikram Kothari and his family members for the second day on Tuesday in connection with alleged bank loan default to the tune of Rs 2,919 crore, officials said.
While the CBI and Enforcement Directorate (ED) quizzed the three directors of Rotomac – Vikram Kothari, his wife Sadhana and son Rahul – 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 reportedly left for Lucknow with Vikram and Rahul on Tuesday evening in connection with the investigation.
Earlier in the day, the CBI team reached Kotak Mahindra Bank on Mall Road here with Sadhana, Rahul and his wife Archana where they operated their bank accounts. A team of income tax officials also reached there to assist the CBI in examining the Kotharis’ bank account details.
While Sadhana was taken to other banks in the family’s BMW car, deputy superintendent of police (CBI) RR Rathi recorded Vikram’s statement at his residence ‘Santushti’ in Tilak Nagar area of Kanpur. Rahul was also taken to Rotomac factory in Dada Nagar industrial area.
Sources claimed that the CBI had taken documents and computers from Kothari’s factory, offices and residences in their possession. A CBI team had 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).
They claimed Kothari neither repaid the loan nor did he pay the interest. Meanwhile, ED officials 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 in other businesses.
THE ED SAID IT HAD NOTIFIED ALL THE LAND, SEA AND AIRPORTS IN THE COUNTRY TO PREVENT THE EXIT OF VIKRAM KOTHARI, AND HIS KIN FROM INDIA, REPORTED PTI.
KANPUR: Rotomac promoter Vikram Kothari, who allegedly defaulted on bank loans to the tune of Rs 2,919 crore, had borrowed money to trade in wheat and gems but actually used it for other purposes, according to the FIR lodged by CBI.
Lodging report against Kothari, deputy general manager and regional head of Bank of Baroda Brajesh Kumar Singh enclosed the details of transactions that suggested fraud.
According to documents provided by Singh, two credits of Rs 14.60 crore and Rs 19.12 crore were sanctioned for the import of wheat from Starcom Resources Pte Ltd, Singapore.
According to the FIR, the entire amount was disbursed to Rotomac Global Pvt Ltd from where the money was remitted to Bagadia Brothers Pte Ltd, Singapore.
“As the documents suggest, money was not utilised for import of wheat and remitted back to Rotomac through a third party not involved in exports,” an official said.
Another example pointed out in documents provided by bank official, a loan of Rs 15.35 crore was sanctioned to Rotomac for import of gems and jewellery from Madrid Implex. In this case too, money returned to Rotomac through a third party.
Financial expert and chartered accountant Abhishek Pandey said the procedure was known as round tripping of money which was a criminal breach of trust and in violation of the Foreign Exchange Management Act, 1999 (FEMA).
According to documents attached with the FIR, majority of transactions of Rotomac were with a handful of buyers, sellers and subsidiaries.
The enforcement directorate is also investigating if the company was betting on foreign exchange rates.
The bank official claimed in the FIR that in other cases too money disbursed for procurement of goods for export was not utilised for the purpose and no export order was executed.
THE ENFORCEMENT DIRECTORATE IS ALSO INVESTIGATING IF THE COMPANY WAS BETTING ON FOREIGN EXCHANGE RATES