After Nirav Modi, it’s Rotamac MD with Rs 3,695 crore loan default case

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vikram kothariIn a similar case to Nirav Modi-PNB scam, report of alleged default of more than Rs. 3,600 bank loan by Rotomac Pen MD Vikram Kothari has emerged. The CBI has filed a FIR against the owner.

Currently, Vikram Kothari, his wife and son are being questioned by the CBI at their Kanpur residence in this matter. The CBI is also carrying out raids since early morning at all his offices in Kanpur.

Kothari had taken a loan of over Rs.800 crore from over five state-owned banks. Allahabad Bank, Bank of India, Bank of Baroda, Indian Overseas Bank and Union Bank of India compromised their rules to sanction loans to Rotomac, sources said.

As stated by reports, Kothari took a loan of Rs.485 crore from Mumbai-based Union Bank of India and Rs.352 crore from Kolkata-based Allahabad Bank.

In February 2017, BoB had declared Rotomac Global Pvt Ltd as a “willful defaulter” after Kothari didn’t pay either the interest or loan to the bank.

Earlier, there was a rumour that Kothari fled the country as his Mall Road office in Kanpur was found closed since last week. It was later denied by him in a statement released on February 18 where Kothari said, “First of all, don’t call it a scam. Also, I am not leaving the country and I am very much in Kanpur. Banks have declared my company nonperforming asset (NPA), but not a defaulter. The matter is still sub judice with National Company Law Tribunal (NCLT). I have taken loans and will repay it all soon.”