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Rotomac Scam: CBI files charge sheet in fraud case

CBI filed a charge sheet against Rotomac Global Pvt Ltd and its managing director Vikram Kothari and his son Rahul Kothari in the bank fraud case worth Rs 3,695 crore.

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The Central Bureau of Investigation (CBI) filed a charge sheet against Rotomac Global Pvt Ltd and its managing director Vikram Kothari and his son Rahul Kothari in the bank fraud case worth Rs 3,695 crore. Both Vikram and Rahul are in judicial custody. They have been accused of cheating a consortium of seven nationalised banks.

In its charge sheet, the CBI also named former bank officials. CBI in the charge sheet has accused Rotomac, its CMD Vikram Kothari, MD Rahul Kothari; SK Updadhyay, AGM Branch Head at Bank of Baroda, and Om Prakash, the then senior manager and Forex in-charge at Bank of Baroda in Kanpur. Shashi Biswas who was then working as the credit officer in a branch of Bank of Baroda has also been charge sheeted.

The father-son duo was arrested on February 22 by the CBI after the Income Tax (IT) Department filed 12 prosecution cases against the company under various sections of the IT Act, 1961. The agency had registered a case on February 18.

CBI, in the charge sheet, has said that the loan which was sanctioned for fulfilling an export order received from Singapore for supply of wheat was diverted to another company Bargadia Brothers Pte Ltd and was later remitted to Rotomac Global Pvt Ltd.

The investigative agency further said money disbursed by the banks for procurement of goods for export was not utilised for the same purpose and most of the transactions of the above companies were with limited buyers, sellers’ sister companies and their subsidiaries. 

This is misappropriation of fund, criminal breach of trust and violation of FEMA guidelines, CBI said. The agency further alleged that the company was betting on interest rate differential in local and foreign currency.

The Consortium

The consortium, which has lent money to the above companies, includes Bank of India (Rs 754.77 crore exposure), Bank of Baroda (Rs 456.63 crore), Indian Overseas Bank (Rs 771.07 crore) and others

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