For Modi’s central government, making frauds to escape from this country is not a new news, but for general public it will be a shocking trend to hear, that big fraudsters are allowed intentionally to escape with big money!
After billionaire diamond merchant Nirav Modi, another defaulter Vikram Kothari, the promoter of Rotomac Pen, has also allegedly gone abroad after swindling ₹800 crore from various public sector banks including Allahabad Bank, Bank of India and Union Bank of India, sources said.
The Kanpur-based company’s owner had taken a loan of more than ₹800 crore from over five state-owned banks.
ROTOMAC GLOBAL PRIVATE LIMITED, formerly Rotomac Pens Private Limited belonging to VIKRAM KOTHARI ENTERPRISES, was incorporated in the year 1992.
Vikram Kothari, the inspiration behind this gigantic ball pen venture has been recognized several times for his entrepreneurial excellence and exemplary contribution to the Indian business industry. He has been awarded by Honorable the then Prime Minister Shri Atal Behari Vajpayee, with the Best Exporter Award, conferred by FIEO – in conjunction with Union Ministry of Commerce, Government of India.
Vikram Kothari also heads Rotomac Exports Pvt. Ltd., Kothari Foods and Fragrances, Crown Alba Writing Instruments, Mohan Steels Limited, RFL Infrastructure Pvt. Ltd. and Rave Entertainment Pvt. Ltd., besides Group’s real estate ventures at Kanpur, Lucknow, Dehradun & Ahmedabad.
Allahabad Bank, Bank of India, Bank of Baroda, Indian Overseas Bank and Union Bank of India compromised their rules to sanction loans to Rotomac, the sources said.
Mr. Kothari took a loan of ₹485 crore from the Mumbai-based Union Bank of India and a loan of ₹352 crore from the Kolkata-based Allahabad Bank.
A year later, Mr. Kothari has reportedly not paid back either the interest or the loan.
Last year, Bank of Baroda (BoB), a consortium partner, declared pen manufacturer Rotomac Global Pvt Ltd as “wilful defaulter.”
The company then moved the Allahabad High Court seeking removal of its name from the list of wilful defaulters.
A Division Bench comprising Chief Justice D.B. Bhosle and Justice Yashwant Verma had passed the order on a petition filed by the company, contending that it had been wrongly declared a “wilful defaulter” by BoB despite having “offered assets worth more than ₹300 crore to the bank since the date of default.”
Rotomac was declared a wilful defaulter vide an order dated February 27, 2017 passed by an authorised committee, as per the procedure laid down by the Reserve Bank of India.