The Central Bureau of Investigation has registered a case against Vikram Kothari, promoter of Rotomac Pens, for allegedly siphoning off ₹3,695 crore in bank loan funds.

The agency also conducted raids at residential and office premises of the accused at Kanpur. The case has been registered on the basis of a complaint filed by the Bank of Baroda. Three directors of the company and unknown bank officials have also been named in the complaint.

It is alleged that the company, through its Directors, in a criminal conspiracy among themselves and other bank officials, cheated Bank of Baroda to the tune of ₹616.69 crore.

“The total outstanding amount of the members of consortium of seven banks i.e. Bank of India, Bank of Baroda, Indian Overseas Bank, Union Bank of India, Allahabad Bank, Bank of Maharashtra & Oriental Bank of Commerce — has come to ₹3,695 crore (approx), including unapplied interest, by siphoning off bank loans disbursed to the said company,” the CBI said in a statement.

The Enforcement Directorate has also registered a money laundering case against Kothari and his family members in connection with the alleged fraud. Media reports from Kanpur quoted Kothari as saying that talks with banks have been going on to resolve the loan issue.

According to news agencies, the loan exposure of the banks is as follows — Bank of India: ₹754.77 crore; Bank of Baroda: ₹456.63 crore; Indian Overseas Bank: ₹771.07 crore; Union Bank of India: ₹458.95 crore; Allahabad Bank: ₹330.68 crore; Bank of Maharashtra: ₹49.82 crore; Oriental Bank of Commerce: ₹97.47 crore.

Related Topics