CBI arrests Rotomac owner Kothari, son

New Delhi, February 22

The CBI today arrested Rotomac owner Vikram Kothari and his son Rahul, both directors in the company, for alleged default on loan repayments to the tune of Rs 3,695 crore, officials said.

Kothari, who was called at the agency headquarters for questioning, and Rahul were not cooperating in the investigation that led to their arrest, they said.

Since 2008, a consortium of seven nationalised banks had given bank loans worth Rs 2,919 crore  to Rotomac Global Pvt Limited, the CBI FIR alleged. The amount swelled to Rs 3,695 crore, including the accrued interest, because of repeated defaults on payment, the officials said.

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

Meanwhile, the Income Tax Department has issued a show-cause notice to the group, asking why prosecution should not be launched against them for alleged tax evasion. — TNS/PTI