You are here: Home » Economy & Policy » News
Business Standard

Rotomac fraud: After ED & CBI, I-T steps up action, attaches 11 bank a/cs

The Kanpur-based group is being probed by the CBI and the Enforcement Directorate in connection with an alleged bank loan fraud of Rs 36.95 billion

Topics
Law Crime

Press Trust of India  |  New Delhi 

Vikram Kothari rotomac
Vikram Kothari Photo: Rotomac Website

After the CBI and the ED, the Income Tax Department has stepped up action against the Rotomac group and its promoters. attaching 11 bank accounts in connection with an alleged tax evasion probe against them, officials said today.

The accounts in various bank branches in Uttar Pradesh were attached last night. The provisional attachment action has been carried out to "recover outstanding tax demands", understood to be about Rs 850 million, the officials said. Three bank accounts of the group were attached last month by the department, they said.

The Kanpur-based group is being probed by the CBI and the Enforcement Directorate in connection with an alleged bank loan fraud of Rs 36.95 billion, given by a consortium of seven banks. The CBI had registered a criminal case against Rotomac Global Pvt Limited, its Director Vikram Kothari, his wife Sadhana Kothari and son Rahul Kothari and unidentified bank officials on a complaint received from Bank of Baroda and conducted raids against them yesterday.

It was alleged in the complaint from the Bank of Baroda that conspirators cheated a consortium of bank loans to the tune of Rs 36.95 billion including the interest component, CBI officials said. The principal amount involved was Rs 29.19 billion. The ED subsequently registered a money laundering case against them. The ED will probe if the allegedly defrauded bank funds were laundered and these proceeds of crime subsequently used by the accused to create illegal assets and black money.

This is the second major financial scam to break out after the sensational Rs 11,400 crore fraud allegedly committed by billionaire jewellery designer Nirav Modi and his uncle Mehul Choksi, who is a promoter of Gitanjali group of companies.

Both left the country before the Punjab National Bank realised the seriousness of the alleged crime.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, February 20 2018. 15:10 IST
RECOMMENDED FOR YOU
.