The Adjudicating Authority under Prevention of Money Laundering Act (PMLA) has confirmed Enforcement Directorate's attachment of properties, worth Rs 177 crore, owned by Rotomac Global Pvt Ltd and its Directors.
The CBI has registered a case against industrialist Vikram Kothari, promoter of Rotomac Pens, for allegedly swindling Rs 3,695-crore bank loans.
Kothari and his family members had allegedly cheated a consortium of banks led by Bank of Baroda to the tune of Rs 3,695 crore including the interest component since 2008 onwards. The principal amount is Rs 2,919 crore. The CBI had booked Kothari, his wife Sadhna and son Rahul under various sections of the Indian Penal Code and Prevention of Corruption Act.
Acting on the CBI's FIR, the ED had registered a money laundering case against Kothari and his family members under the Prevention of Money Laundering Act (PMLA).
The accused and their company — Rotomac Global Pvt Ltd — allegedly cheated Rs 3,695 crore after creating several front companies.
"They cheated the banks by siphoning of bank loans credited to Rotomac Global Pvt Ltd. The credit sanctioned and disbursed to the company was utilized for purposes other than intended purpose for which loan was given," the CBI spokesperson had said after registration of the case earlier this year.
The accused had taken loan for exporting wheat from a Singapore-based company Bargadia Brothers Pvt Ltd but the amount was diverted to Rotomac. The accused directors allegedly created several fictitious and front companies for carrying out transactions and submitted forged documents to induce banks for getting loans.
Treating assets worth Rs 177 crore as "proceeds of crime", the ED had earlier attached the properties under PMLA. The adjudicating authority on Monday conformed the attachment by ED against the firm Rotomac and its promoter Vikram Kothari and his family members.