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

Rotomac fraud: Bank of Baroda has exposure of Rs 4.56 billion

The bank said the account of Rotomac Global was declared a non-performing asset (NPA) or bad loan by it on October 3, 2015

Press Trust of India  |  Mumbai 

Bank of Baroda

State-owned of Baroda (BoB) today said it has an exposure of Rs 4.56 billion in the Rotomac Global, currently being investigated by and the in connection with an alleged loan fraud of Rs 36.95 billion.

The bank, in a filing to stock exchanges, said the account of Rotomac Global was declared a non-performing asset (NPA) or bad loan by it on October 3, 2015 and it has made 100 provisioning for the loan.

"The has exposure of Rs 4.56 billion on M/s under consortium arrangement with six other banks. The account was declared NPA by the bank on October 3, 2015 and has been 100 per cent provided for," the filing said.

BoB was asked by stock exchanges for clarification regarding reports related to Rotomac.

After the and ED, the has stepped up action against Kanpur-based Rotomac group and its promoter, attaching 11 in connection with an alleged tax evasion probe against them, source said.

The accounts in various in were attached last night.

The bank further said that it has taken necessary "recovery measures" and filed proceedings in the in October 2016 and a decree in favour of the bank was granted in January 2017.

It has also initiated action against Rotomac Global under SARFAESI Act, the filing said.

After the enactment of Insolvency and Bankruptcy Code, the bank initiated corporate insolvency resolution process at NCLT Allahabad in June 2017 and the process is under way.

After the company and its directors were declared wilful defaulters, the bank had reported the fraud to the Reserve Bank and a complaint lodged with the CBI, ED and Directorate of Revenue Intelligence, the filing said.

First Published: Tue, February 20 2018. 19:48 IST
RECOMMENDED FOR YOU