Pen In The Neck For Rotomac’s Vikram Kothari: CBI books, grills owner and family

The CBI raided Rotomac Pens promoter Vikram Kothari's Kanpur home and offices in Kanpur and Delhi early on Monday, a day after the agency booked him, his director wife Sadhana and son Rahul, besides bank officials, for allegedly defaulting on loans worth Rs 3,695 crore. The principal amount involved is Rs 2,919 crore.

The CBI conducted raids at Kothari's residence in Tilak Nagar, office at Mall Road and factory at Panki Industrial Area in Kanpur, besides two other premises. The CBI sealed his office and factory in Kanpur. A residential apartment and office premises in Delhi have been sealed as well, said CBI spokesperson Abhishek Dayal.

The agency questioned Kothari, his family members, two directors and several staff members for hours and seized documents, laptops, iPhones and iPads.

The action was taken after a complaint by the Bank of Baroda that conspirators cheated a consortium of seven banks by siphoning off loans. This comes amid investigations after Punjab National Bank reported a Rs 11,400 crore-fraud involving billionaire jeweller Nirav Modi and uncle Mehul Choksi.

The ED also registered a money laundering case against Kothari and his family members. The ED will probe if the funds were laundered and the proceeds were used to create illegal assets.

The ED is also probing his company's transactions and properties abroad.

The CBI alleged that a number of fictitious and front companies seemed to have been formed to carry out illegal operations.

On Sunday, Kothari had denied reports he had fled the country. "I am very much in Kanpur with my family and my businesses are running. I am not going to run away anywhere."

Later in the evening, he was also seen at a high-profile wedding. "I'm in talks with the banks and have held three meetings. I will pay every penny to the banks," he had said.

In 2017, Bank of Baroda, a consortium partner, declared Rotomac Global Pvt Ltd a "wilful defaulter".

The company moved the Allahabad High Court against the decision. The court said the company was wrongly declared a wilful defaulter despite having "offered assets worth more than Rs 300 crore since the date of default".