The Central Bureau of Investigation probing the Rotomac Pens fraud case has learnt that the credits that were sanctioned for any particular export order was diverted to an offshore company. The money was later remitted back into the Kanpur-based company without executing an export order, CBI officials have learnt.
The CBI which took over the probe pegged the fraud at Rs 2,919 crore. Further it said along with liabilities and interest, the total outstanding amount stood at Rs 3,695 crore. The CBI has booked the owner of Rotomac Vikram Kothari and his family members for criminal breach of trust, diversion of funds, misappropriation and violation of the foreign exchange act.
The Rotomac website states that Kothari heads Rotomac Exports Pvt Ltd, Kothari Foods and Fragrances, Crown Alba Writing Instruments, Mohan Steels Limited, RFL Infrastructure Pvt Ltd and Rave Entertainment Pvt Ltd, besides Group's real estate ventures at Kanpur, Lucknow, Dehradun and Ahmedabad.
The CBI says that the money that was disbursed by the banks for procurement of good for export was not utilised. Further there was never any export order executed, the agency also found. The CBI has also initiated a probe to find out if fake documents had been submitted to induce banks into advancing the money. Most transactions were with limited number of buyers and the company was working for an interest rate differential in local and foreign currency hence constituting an officer under the Foreign Exchange Management Act, CBI officials also said.
The CBI has also learnt that Kothari had submitted photocopies of fake bills to banks. He also did not submit copies of insurance of goods procured. The Enforcement Directorate which has joined the probe will investigate if the funds obtained were laundered. It would also probe if the money was used to create black money and illegal assets.