The Central Bureau of Investigation (CBI) has filed a case towards pen producer Rotomac World Pvt Ltd and its promoter Vikram Kothari, his spouse Sadhna Kothari and and son Rahul Kothari for allegedly dishonest Financial institution of India of Rs 806 crores, individuals conversant in the event stated.
That is the third CBI case towards the Rotomac group, run by Kanpur based mostly Kotharis, for dishonest banks.
In February 2018, CBI filed its first case towards Rotomac and Vikram Kothari for allegedly dishonest a consortium of seven banks together with Financial institution of Baroda, Indian Abroad Financial institution, Union Financial institution of India, Allahabad Financial institution, Financial institution of Maharashtra and Oriental Financial institution of Commerce and Financial institution of India for allegedly defrauding them of Rs three,695 crore.
It was alleged that Kothari bought loans disbursed based mostly on overseas letters of credit score (FLCs) on the pretext of creating funds to his patrons and suppliers in locations like Dubai, Sharjah and Hong Kong however they didn’t exist.
The Kotharis allegedly supplied incomplete paperwork or photocopies of payments of loading to the banks on the pretext that authentic papers have been despatched to the importer.
The banks had alleged that Rotomac didn’t connect the packing checklist, obligatory insurance coverage copies of products, certificates of origin of products, or the inspection certificates from third events whereas submitting paperwork to it. When financial institution officers visited Rotomac’s suppliers and patrons overseas, they discovered that the import/export enterprise was allegedly operating by way of shell corporations.
Later, a second case was registered in February 2020 towards the corporate for allegedly dishonest Allahabad Financial institution of Rs 36 crore.
Within the newest FIR, CBI has alleged that the corporate took loans over a time frame from Financial institution of India for which there’s excellent of Rs 806 crore.
It has been alleged that firm diverted many of the funds taken from the financial institution.
With three instances registered by CBI, complete quantity pertaining to financial institution fraud involving Kanpur based mostly Kotharis involves round Rs four,500 crore.
Kotharis’ authorized consultant couldn’t be positioned by HT.