Rotomac pens owner Vikram Kothari, son sent to one-day transit remand

The Patiala House Court in Delhi sent Rotomac owner Vikram Kothari  and his son Rahul to one-day transit remand in connection with the Rs 3,695-crore loan default case on Friday. The duo will be produced before the concerned court in Lucknow on Saturday.

Vikram and his son were produced before Additional Chief Metropolitan Magistrate Samar Vishal, a day after they were arrested for alleged default on loan repayment. Defence advocate Pramod Kumar Dubey had raised objections to the jurisdiction of the court, saying the accused should be produced before a sessions court and not before a magisterial court. The court then reserved its order till 2 pm on the issue of jurisdiction.

A consortium of seven banks had extended loans worth Rs 2,919 crore to Rotomac Global Pvt Limited 2008 onwards, according to a CBI FIR. The amount swelled to Rs 3,695 crore, including the accrued interest, because of repeated defaults on payment, the agency said. The CBI initiated the action on the complaint of Bank of Baroda, a member of the consortium led by Bank of India, which had approached the agency fearing that Kothari may flee the country like  Nirav Modi and his uncle Mehul Choksi.

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 49.82 crore and Oriental Bank of Commerce Rs 97.47 crore, the agency said. The CBI had filed the case against Vikram, his wife Sadhana and Rahul, and unidentified bank officials.

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