Rotomac chairman Vikram Kothari arrested for Rs. 800cr loan default
What's the story
Amid rumors that Vikram Kothari had fled the country after defaulting on loans worth Rs. 800cr, the Rotomac chairman has been arrested, reports say.
Speculation about him running away had surfaced after his Mall Road office was found locked for a week.
Hours earlier, Kothari had denied he had left. "I am an Indian citizen and am very much in my hometown (Kanpur)."
Violations
Loans of Rs. 800cr issued reportedly by breaking rules
The alleged Rotomac scam emerged right after the massive PNB scam. Kothari has been accused of defaulting on loans of over Rs. 800cr taken from Allahabad Bank, Bank of India, Bank of Baroda, Indian Overseas Bank and Union Bank of India.
Sources said rules were "compromised" to issue the loans.
Bank officials said they hadn't been able to reach Kothari on phone since sometime.
Quote
My company is non-performing asset, not defaulter: Kothari clarifies
Responding to rumors that he had fled the country, Kothari clarified: "Don't call it a scam. Banks have declared my company non-performing asset, but not defaulter. The matter is still sub-judice with National Company Law Tribunal. I have taken loans and will repay it soon."
Action
Raids going on at Kothari's premises, family members being questioned
In February'17, Kothari had been declared a willful defaulter, but he had contested the tag in the Allahabad HC, claiming he had offered assets worth Rs. 300cr to the banks.
The HC decided in its favor, but Rotomac couldn't repay the loans.
Kothari, his wife and son are now being questioned by the CBI.
Raids are being conducted at his premises in Kanpur.
Status
Kothari might soon lose large chunk of his assets
Vikram Kothari's family business was divided between him and his brother Deepak Kothari in the early 1990s.
While Vikram got Rotomac, Deepak got the Pan Parag business.
Amid speculations that he left India, Vikram was spotted at a wedding yesterday.
He could now lose his assets as Allahabad Bank manager Rajesh Gupta had said they would sell properties if he can't repay the loans.