Rotomac bank fraud: CBI arrests owner Vikram Kothari and his son Rahul Kothari

Kothari, his wife Sadhana and son Rahul, all directors of Rotomac Global Pvt Ltd, had allegedly diverted the loan amount towards purposes other than what they were meant for.

The Central Bureau of Investigation (CBI) on Thursday arrested the owner of Rotomac Pens, Vikram Kothari, and his son Rahul in connection with an alleged loan default of Rs 3,695 crore to a consortium of seven nationalised banks. 

Kothari was earlier questioned by the agency in its New Delhi headquarters on Wednesday and in Kanpur, where his company and residence located, on Tuesday. 

Kothari, his wife Sadhana and son Rahul, all directors of Rotomac Global Pvt Ltd, had allegedly diverted the loan amount towards purposes other than what they were meant for, the officials said. 

One of the banks in the consortium, the Bank of Baroda, had approached the CBI, requesting an FIR to be lodged against Kothari as it apparently feared that he might leave the country, they added. 

The CBI had registered a case on February 18, following the complaint. 

Initially, the alleged scam was estimated to be worth Rs 800 crore, but after the CBI launched its probe into the accounts of the Rotomac Global Pvt Ltd, it was found that the company had allegedly taken loans from the Bank of India, the Bank of Maharashtra, the Indian Overseas Bank, the Union Bank of India, the Allahabad bank and the Oriental Bank of Commerce.