Rotomac scam pegged at Rs 3,695 cr; CBI, ED probe

New Delhi, February 19 

Days after the PNB scam,  the banking sector took another  big hit with Rotomac pen promoter Vikram Kothari allegedly swindling Rs 3,695 crore from a consortium of seven banks, prompting two Central probe agencies to register cases against him and carry out searches at his premises in Kanpur.

The banks invol-ved in Rotomac’s case, in which the CBI as well as the ED have registered cases, with the defaulted loan amount in brackets, are Bank of Baroda (Rs 456.53 crore), Bank of India (Rs 754.77 crore), Bank of Maharashtra (Rs 49.82 crore), Allahabad Bank (Rs 330.68 crore), Oriental Bank of Commerce (Rs 97.47 crore), Indian Overseas Bank (Rs 771.07 crore) and Union Bank of India (Rs 458.95 crore), according to CBI.

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The CBI alleged that the accused had cheated a consortium of seven banks by siphoning off loans to the tune of Rs 2,919 crore without interest and bank charges and the total outstanding amount along with liabilities was pegged at Rs 3,695 crore.

The news of the scam rattled the stock markets of these banks. The CBI case names Kanpur-based Rotomac Global Pvt Limited, its director Vikram Kothari, wife Sadhana Kothari, son Rahul Kothari and unknown bank officials. — PTI