New Delhi: A case has been registered against the promoter of the Rotomac pens Vikram Kothari and others by the Central Bureau of Investigation (CBI) for allegedly cheating a consortium of 7 banks of Rs 3,695 crores by deafulting loans taken for business.
Earlier, the default was said to be of Rs 800 crore however after scrutinizing the documents the CBI has said that the amount is much bigger.
After registering an FIR last night, CBI teams conducted raids at several locations in Kanpur and questioned Kothari, his son and wife on Monday.
According to the CBI, Rotomac has siphoned off banks loans to the tune of Rs 2,919 which excludes interest. The investigative agency added that the total outstanding amount with interest is Rs 3,695.
Bank of India, Bank of Baroda, Bank of Maharashtra, Indian Overseas Bank, Union Bank of India, Allahabad Bank and Oriental Bank of Commerce are the seven banks who have been cheated by the Rotomac.
CBI has said that there have been no arrests in the case yet however, the accused Kothari, his wife and son are being questioned.
A case has been registered against Kothari and his family by the Enforcement Directorate also in connection with the 3,659 crore fraud.
The fraud is the second of its nature after Punjab National Bank detected a massive fraud amounting to $1,771.7 million, which is the largest loan fraud in the history of India.
The Bank, which is India’s third largest lender, on Wednesday 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.
However the bank said that they have the capacity to recover.
Nirav Modi, a billionaire jeweller and a diamond merchant is beleived to be at the center of the fraud, the bank has informed.