Kanpur: Within two days, the banking scam involving Rotomac promoter Vikram Kothari has swelled from Rs 800 crore to Rs 3,695 crore. This includes the interest component. The principal amount involved is Rs 2,919 crore.
According to the Bank of Baroda complaint, Kothari and the other conspirators had cheated a consortium of seven banks by skimming loans sanctioned to the company for procurement of wheat and other goods for export. No export orders were, however, executed.
There was also misappropriation of funds: For example, a loan sanctioned for an export order received from Singapore for supply of wheat was diverted to a Singapore-based firm Bargadia Brothers but the money was later remitted back to Rotomac.Likewise, interest rate differentials were used to show profits and he carried out business through a front of fake suppliers. Kothari’s wife Sadhna, son Rahul and unidentified bank officials have been named in the FIR.
The loan break-up as per the FIR is as follows: Bank of India (Rs 754.77 crore), Bank of Baroda (Rs 456.63 crore), Indian Overseas Bank (Rs 771.07 crore), Union Bank of India (Rs 458.95 crore), Allahabad Bank (Rs 330.68 crore), Bank of Maharashtra (Rs 49.82 crore) and Oriental Bank of Commerce (Rs 97.47 crore). On Monday, the Enforcement Directorate also registered a money laundering case against Kothari and his family members.
Kothari’s lawyer has refuted the “scam” charge and claimed that “it is only a case of loan default”. Amid reports that he had fled, Kothari was spotted at a wedding on Sunday night. “I live in Kanpur and will continue to live here only. There is no country better than India. I am not going to run away anywhere,” he told reporters.
In February last year, Kothari was declared a wilful defaulter. He contested it in the Allahabad High Court and won but allegedly didn’t pay his dues. The CBI on Monday raided several locations in Kanpur in connection with the loan default. The agency also sealed a residential premises and an office of Rotomac in New Delhi.