CBI questions, books Rotomac directors as loan default is seen to touch Rs 3,695 cr

The Rotomac loan default case would touch Rs 3,695 crore,including interest, according to the Central Bureau of Investigation (CBI) officials who are looking into the case.

The CBI on Monday raided several locations in Kanpur in connection with the loan default by the Rotomac Pen company's chief Vikram Kothari, his wife and son, an official said. A case was also filed against the three and some unidentified bank officials on Sunday night.

Earlier, it was stated by investigator that the default would amount to Rs 800 crore. However, in the complaint filed by the the Bank of Baroda, it was alleged that a consortium of seven banks had been cheated by Kothari and his company by siphoning off Rs 2,919 crore taken as loan. Total outstanding amount, along with interest, would amount to Rs 3,695 crore, a CBI official, who did not want to be identified, said.

Kothari is the Chairman and Managing Director of the Kanpur-based Rotomac Global Private limited which had obtained the money from the consortium of banks. His wife Sadhana and son Rahul are directors of the company.

The CBI also sealed a residential premises and an office of Rotomac directors in New Delhi.

Coming close on the heels of the Rs 11,300 crore Punjab National Bank's fraud, the Rotomac case that surfaced on Sunday had fanned speculations that Kothari too, might try and flee the country.

However, the CBI could reach Kanpur and question the three accused. The CBI also raided three other locations in Kanpur related to the case, an official said.

The banks involved in the loan default, apart from BoB are Bank of India, Bank of Maharashtra, Indian Overseas Bank, Union Bank of India, Allahabad Bank and Oriental Bank of Commerce.