Rotomac loan default case: Vikram Kothari and son sent to judicial custody till March 21
A Special CBI Court on Wednesday sent Rotomac pens owner Vikram Kothari and his son Rahul Kothari to judicial custody till March 21 in connection with a bank loan default case.
Vikram Kothari and Rahul Kothari were on February 22 arrested by the CBI in connection with the Rs 800 crore bank loan default case. Kothari had been declared a defaulter over a year back.
The Central Bureau of Investigation had in February questioned Vikram Kothari in connection with the alleged Rs 800 crore bank loan default case. Earlier the CBI took up the Rs 800 crore bank fraud case involving Rotomac. The agency filed the FIR after it was found that the company had taken a loan of Rs 800 crore and not repaid the same.
The Kanpur-based company's owner had taken a loan of more than Rs 800 crore from over five state-owned banks. Allahabad Bank, Bank of India, Bank of Baroda (BoB), Indian Overseas Bank and Union Bank of India compromised their rules to sanction loans to Rotomac.
Kothari took a loan of Rs 485 crore from Mumbai-based Union Bank of India and a loan of Rs 352 crore from Kolkata-based Allahabad Bank. A year later, Kothari had reportedly not paid back either the interest or the loan. Last year, BoB declared Rotomac Global Pvt Ltd as "wilful defaulter" and the firm had moved the Allahabad HC seeking removal of its name from the list.
Mansukhlal Kothari, who established Pan Parag in 1973, left his empire for his sons Vikram and Deepak who divided the businesses. While Deepak kept Pan Parag, Vikram settled with Rotomac Group.