CBI books Rotomac Global in ₹750 crore bank fraud case
The Hindu
The company is already facing multiple investigations.
The CBI has booked Kanpur-based Rotomac Global and its directors for alleged fraud of ₹750.54 crore linked to Indian Overseas Bank, officials said on Wednesday.
The company, which was in the business of writing instruments, has a total outstanding of ₹2,919 crore against a consortium of seven banks led by Bank of India in which Indian Overseas Bank has an exposure of 23%.
The agency has booked the company and its Directors - Sadhna Kothari and Rahul Kothari - under IPC sections related to criminal conspiracy (120-B) and cheating (420), besides various provisions of the Prevention of Corruption Act.
The company is already facing multiple investigations by the CBI and the Enforcement Directorate on the basis of complaints from consortium members.
In its complaint to the CBI, now a part of the FIR, the Indian Overseas Bank alleged that the company was sanctioned a non-fund-based limit of ₹500 crore on June 28, 2012.
The account was declared a non-performing asset on June 30, 2016, with an outstanding of ₹750.54 crore after default on payments.
The bank alleged it had issued 11 Letters of Credit (LC) to meet the company's foreign trade requirements, which all got devolved involving an aggregate amount of ₹743.63 crore, leaving no security for the bank.
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