Another banking scam exposed as one more corporate reportedly flees from India

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The owner of Rotomac Pens has been accused of fleeing with 800 Crores from various banks

Just days after the Punjab National Bank (PNB) Rs 11,360 crore fraud came to light, another state-run bank has reported a million dollar scam. The parent company of Rotomac Pens has been accused of fleeing with loans of more than Rs 800 crore from various government banks in the country.

According to a report in India based News18, the owner of the company, Vikram Kothari, had taken a loan of more than Rs 800 crores from five government banks. Sources have confirmed that Allahabad Bank, Bank of India, Bank of Baroda, Indian Overseas Bank and Union Bank of India compromised their rules to render these loans to Kothari.

ALSO READ: PNB shares fall 7.8 percent after detecting fraudulent transactions worth $1,771.7 million

Earlier this week, in what is reported to be the largest ever banking scam in India, the Punjab National Bank, India’s third largest lender, detected fraudulent transactions worth $1,771.7 million (Rs.10,000 cr) in its Mumbai branch, resulting in a sharp decline in its share prices.

The Bank share prices slipped 7.8 percent after the fraud detection.

“The bank has detected some fraudulent and unauthorized transactions in one of its branch in Mumbai for the benefit of a few select account holders with their apparent connivance. Based on these transactions, other banks appear to have advanced money to these customers abroad,” said PNB to BSE Ltd.

The bank said these transactions were contingent in nature and liability arising out of these on the bank would be decided based on the law and genuineness of underlying transactions.



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