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Rotomac promoter Vikram Kothari granted bail in loan default case

Press Trust of India  |  Lucknow 

The bench of High Court Friday granted eight weeks short term to Kothari in connection with alleged Rs 3695 crore willful loan default case.

The CBI had arrested on February 23, 2018 and since then he has been in judicial custody.He is presently admitted in SGPGI.

Justice A R Masoodi also asked Kothari to surrender his passport to the trial court before his release and further directed him to inform about his movement in the country during the period.

It further directed Kothari to surrender soon after expiry of the eight weeks period.

The court had earlier on November 30, 2018 rejected Kothari's regular bail plea. It had though granted bail to his son

The case relates worth Rs 2,919 crore from 2008 onwards to by a consortium of seven nationalised banks, the CBI FIR has alleged.

The amount swelled to Rs 3,695 crore, including the accrued interest, because of repeated defaults on payment, it said.

The instances were allegedly found where the credit sanctioned and disbursed to the company was used for purposes other than execution of the claimed export orders.

The CBI had initiated the action on the complaint of Bank of Baroda, which was a member of consortium led by Bank of India, which had approached the agency fearing that Kothari might flee the country like and his uncle

The principal exposure of the banks regarding the loan is Rs 754.77 crore, Rs 456.63 crore, Overseas Rs 771.07 crore, Union Rs 458.95 crore, Bank Rs 330.68 crore, 49.82 crore and Rs 97.47 crore, it said.

Kothari, his wife Sadhana, and son Rahul were named in the FIR, they said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 11 2019. 21:20 IST