NEW DELHI : In a big breakthrough, the CBI on Thursday arrested Rotomac Pens owner Vikram Kothari, his son Rahul Kothari and two directors of the company for defrauding a consortium of banks of over Rs 3,695 crore.
The father-son duo have been questioned by the investigating team over the past two days at the CBI headquarters. Mr. Kothari’s wife Sadhana is also an accused in the FIR that was registered on February 18 following a complaint by the Bank of Baroda.

As alleged, since 2008-09, Mr. Kothari’s companies had taken loans worth ₹2,919 crore from a consortium led by the Bank of India and comprising Bank of Baroda, Indian Overseas Bank, Union Bank of India, Allahabad Bank, Bank of Maharashtra and the Oriental Bank of Commerce.
The agency was questioning the stationery czar-turned-loan defaulter for the past three days. Kothari had taken several loans worth Rs 2,919 crore – with interest around Rs 3,695 crore – from a consortium of seven banks since 2008, but allegedly used the money for other business purposes, and defaulted on them.

Apart from his son, the role of his wife Sadhna Kothari, and his company directors, is also under scanner, as they allegedly hid information about his fake companies from the banks.

Besides conducting raids at his facilities across UP, the ED had informed all the authorities concerned to make sure he didn’t flee from the country like billionaire Nirav Modi would defrauded the PNB of around Rs 11,400 crore.Seven banks, Rs 2,919-crore loan

Of the total Rs 2,919 crore principal amount (excluding interest) given to Vikram Kothari’s Rotomac, Bank of India loaned Rs 754.77 crore, Bank of Baroda Rs 456.63 crore; Indian Overseas Bank Rs 771.07 crore; Union Bank of India Rs 458.95 crore; Allahabad Bank Rs 330.68 crore; Bank of Maharashtra Rs 49.82 crore; and Oriental Bank of Commerce Rs 97.47 crore.

However, it is alleged the directors cheated the banks by diverting the funds. “There are instances where the credit sanctioned and disbursed to the company was used for purposes other than execution of the claimed export orders,” a CBI official had earlier said.
The FIR also cites a case in which the credit sanctioned for an export order purportedly received from Singapore for supply of wheat was diverted to another company named Bargadia Brothers Private Limited (Singapore). “The money was later remitted back to the account of Rotomac Pen, which amounts to round-tripping,” said the official.
Another modus operandi was to use the loans, disbursed on proposals for procurement of goods meant for exports, for undeclared purposes. In such cases, no export orders were allegedly executed by the company. It amounted to misappropriation, criminal breach of trust and violation of the Foreign Exchange Management Act, alleged the agency.