CBI files charge-sheet against Rotomac in ₹456-cr loan default case

The CBI has filed its charge sheet against Rotomac Global Pvt. Ltd. and its promoters in connection with the ₹456.63-crore alleged loan default towards Bank of Baroda, which is part of a total default of ₹3,690 crore towards a consortium of seven banks, officials said.

After a three-month probe, the charge-sheet was filed in a special court in Lucknow. It deals with the ₹456.63-crore loan of Bank of Baroda as the probe into the remaining amount was still continuing, they said, adding that more charge sheets could be filed in the case.

Besides Kanpur-based Rotomac Global Pvt. Ltd, the CBI has also charged its CMD Vikram Kothari, his son and director Rahul Kothari, then AGM of Bank of Baroda SK Upadhyay, then senior manager of the bank Om Prakash Kapoor and then bank manager Shashi Bishwas, they said.

The agency has charged Vikram Kothari and his son, who are in judicial custody, and others with alleged criminal conspiracy, cheating among others and under provisions of the Prevention of Corruption Act.

The CBI has alleged that the directors of the company diverted loan funds, issued for packing credit, to other purposes. A consortium of seven nationalised banks had given loans worth ₹2,919 crore to Rotomac Global Pvt Limited from 2008 onwards, the CBI FIR alleged.

The amount swelled to ₹3,695 crore, including the accrued interest, because of repeated defaults on payment, the officials said. The CBI has initiated the action on the complaint of Bank of Baroda, which was a member of consortium led by Bank of India, they said.

The principal exposure of the banks regarding the loan is Bank of India ₹754.77 crore, Bank of Baroda ₹456.63 crore, Overseas Bank of India ₹771.07 crore, Union Bank of India ₹458.95 crore, Allahabad Bank ₹330.68 crore, Bank of Maharashtra ₹49.82 crore and Oriental Bank of Commerce ₹97.47 crore, the agency said.