Rotomac group owner Vikram Kothari and his son Rahul were sent to a one-day transit remand by Delhi's Patiala Court in relation to Rs 3,695 crore loan default case. The father-son duo will now be produced before a special court in Lucknow.
The Central Bureau of Investigation (CBI) had arrested Kothari and his son on Thursday for allegedly defrauding a consortium of banks of Rs 3,695 crore. The duo was produced before Additional Chief Metropolitan Magistrate Samar Vishal where the agency demanded two-day transit remand.
Kothari, on behalf of Rotomac Global Pvt Limited, had availed loans worth Rs 2,919 from a consortium of seven banks led by Bank of India to 2008 onwards, according to a CBI FIR. The amount increased to INR 3,695 crore, including the accrued interest, because of repeated defaults on payment, the agency said.
The principal exposure of the banks regarding the loan is Bank of India Rs 754.77 crore, Bank of Baroda Rs 456.63 crore, Overseas Bank of India Rs 771.07 crore, Union Bank of India Rs 458.95 crore, Allahabad Bank Rs 330.68 crore, Bank of Maharashtra R49.82 crore and Oriental Bank of Commerce Rs 97.47 crore, the agency said.
Bank of Baroda (BoB), one of seven lenders to Kothari, approached the CBI to file an FIR against Kothari, fearing that he may flee from India like diamond businessman Nirav Modi and his uncle Mehul Choksi, who are wanted in Rs 11,400-crore PNB scam.
Moreover, Rotomac group of companies have been asked by the Income Tax Department to pay Rs 106 crores in taxes. The tax department had reportedly issued a note to Kothari and his family, asking why prosecution proceedings should not be initiated against the promoters for alleged tax evasion.
The Income Tax Department had conducted raids against Rotomac group of companies back in 2014. The following assessment which concluded in 2017 led to detection of alleged income on which tax has not been paid.
"Prosecution has already been initiated. Tax demand worth Rs 106 crore has also been raised against the company," a government official was quoted by Moneycontrol.
The tax department had provisionally attached four immovable properties related to the Rotomac group on Wednesday, three in Kanpur and one in Ahmedabad. Earlier this week, 15 bank account of the group have been attached in various banks across Uttar Pradesh.
The inquiry reveals Vikram Kothari used different methods to seek loan from these banks. As per the allegations, in a clear violation of FEMA (Foreign Exchange Management Act) Rules, he used loans availed for export to help his Kanpur-based company. He allegedly created many fake companies by furnishing forged documents to seek loans from these banks.
Kothari had availed Rs 485-crore loan from Mumbai-based Union Bank of India and Rs 352-crore loan from Kolkata-based Allahabad Bank. A year later, he didn't pay either the interest or the loan. Last year, BoB, after declared him a wilful defaulter for the loan default, and he moved the Allahabad high court seeking removal of his name. The court declared he was "wrongly declared a wilful defaulter by BoB despite having offered assets worth over Rs 300 crore since the date of default".