After the Nirav Modi Scam of Rs. 11400 crore, Vikram Kothari, promoter of Rotomac Global Private Limited galloped Rs. 3695 crores. Kothari acquired the loan from several nationalised banks including Bank of Baroda, Bank of India, Indian Overseas Bank, Allahabad Bank and Union Bank of India. The CBI has registered the case on the basis of the complaint from Bank of Baroda. According to the sources Mr. Kothari obtained the loan of Rs. 485 crores from Union Bank of India and Rs. 352 crores from Allahabad Bank. These loans were obtained by portraying fake supplies, fake export orders and fake bills.

Last year in February Bank of Baroda, declared the company as “wilful defaulter”. The company then moved to the Allahabad High Court for removal of company’s name from the list of wilful defaulters. The company offered assets of more than Rs. 300 crores to bank against the clearance of loan. On this contention, by the Company, a Division Bench comprising of Chief Justice D.B. Bhosle and Justice Yashwant Verma had passed an order to strike off the company’s name from the list of “wilful defaulter”. But the company still has defaulted to repay the loan.

The CBI has carried raids on Monday at three locations in Kanpur where the pen manufacturer company is based. The authority questioned the owner’s wife and son at their residence at Kanpur. Following the reports of loan defaults and rumors of his absconding, the businessman confirmed that he has no intention to leave the country. He said that he is resident of Kanpur and would stay in the city, however, he may have to travel abroad for official purposes. He also confirmed that the matter is sub-judice with National Company Law Tribunal [NCLT] and is constantly cooperating with banks. He also promised to repay all the loans soon.

Rotomac Global Private Limited was declared a willful defaulter vide an order dated 27th February 2017 passed by an authorized committee, as per procedure laid down of the Reserve bank of India.