Now, Rotomac Pen’s Rs 800 cr defaulter flees country


Team Udayavani, Feb 19, 2018, 1:15 PM IST

New Delhi: After billionaire diamantaire Nirav Modi, another defaulter Vikram Kothari, the promoter of Rotomac Pen, has also allegedly gone abroad after swindling Rs 800 crore from various public sector banks including Allahabad Bank, Bank of India and Union Bank of India, sources said.

The Kanpur-based company’s owner had taken a loan of more than 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.

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

A year later, Kothari has reportedly not paid back either the interest or the loan.

Last year, Bank of Baroda (BoB), a consortium partner declared pen manufacturer Rotomac Global Pvt Ltd as “wilful defaulter”.

The company moved the Allahabad High Court seeking removal of its name from the list of wilful defaulter.

A division bench comprising Chief Justice D B Bhosle and Justice Yashwant Verma had passed the order on a petition filed by the company, contending that it has been wrongly declared a “wilful defaulter” by BoB despite having “offered assets worth more than Rs 300 crore to the bank since the date of default”.

Rotomac was declared a wilful defaulter vide an order dated February 27, 2017 passed by an authorised committee, as per the procedure laid down by the Reserve Bank of India.

The development comes less than a week after Punjab National Bank (PNB) had detected a USD 1.77 billion (about Rs 11,400 crore) scam wherein Modi allegedly acquired fraudulent letters of undertaking (LoUs) from a branch in Mumbai to secure overseas credit from other Indian lenders.

The PNB fraud pertains to issuance of fake LoUs to companies associated with billionaire jeweller Nirav Modi by errant PNB employees, which enabled these companies to raise buyers credit from international branches of other Indian lenders.

Last month, PNB had lodged an FIR with CBI stating that fraudulent LoUs worth Rs 280.7 crore were first issued on January 16. At the time, PNB had said it was digging into records to examine the magnitude of the fraud.

In the complaint, PNB had named three diamond firms – Diamonds R Us, Solar Exports and Stellar Diamonds – saying they had approached it on January 16 with a request for buyers credit for making payment to overseas suppliers.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Sachin Pilot arrives in Delhi amid high political drama in Rajasthan Cong

After minister raises concern over ‘Love Jihad’, MP govt asks Garba organisers to check ID cards at pandals

JeM ultra killed in encounter in J&K’s Kulgam: Police

Two women try to cause damage at places of worship in Hyderabad

Rishi Sunak supporters speak out as UK economy spirals under Liz Truss

President Murmu lays foundation of NIV south zone campus in Bengaluru

WATCH: DRDO conducts successful test flight of VSHORADS missile


Related Articles More

Adani to invest USD 100 bn across new energy, data centres

Rupee falls 43 paise to all-time low of 81.52 against US dollar

Apple now manufacturing iPhone 14 in India

Merger of entities with Tata Steel will simplify management, help focus on business: CFO

Zomato to inspect cloud kitchens hosting more than 10 brands to curb malpractices

MUST WATCH

Sunil Kumar Statement about PFI

Dasara Celebration at Uchila Mahalakshmi Temple

Kollur Mookambika

President Draupadi murmu inaugurates Mysore Dasara-2022

Creative PU College Moodabidri


Latest Additions

Sachin Pilot arrives in Delhi amid high political drama in Rajasthan Cong

After minister raises concern over ‘Love Jihad’, MP govt asks Garba organisers to check ID cards at pandals

Bike racer, father to shell out Rs 41 lakh as compensation to kin of accident victim

JeM ultra killed in encounter in J&K’s Kulgam: Police

Two women try to cause damage at places of worship in Hyderabad

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.