Days after the news of Punjab National Bank Fooled of Rs 11, 360 crores over a period of seven years, another bank fraud has come to light where the parent company of Rotomac Pens is accused of fleeing with loans of more than Rs 800 crore from various PSU banks.
According to News18, the owner of the company Vikram Kothari had taken over Rs 800 crores from five PSU banks Allahabad Bank, the Bank of India, Bank of Baroda, Indian Overseas Bank and Union Bank of India
Kothari took a loan of Rs 485 crore from Union Bank of India and a debt of Rs 352 crore from Allahabad bank. however after 12 months, neither paid the interest nor the amount is taken. Kothari’s office in Kanpur is locked for past a week.
Vikram Kothari, chairman, and MD of Rotomac Global Private Limited has been arrested, a few hours after he rubbished media reports claiming him to have left the country.
The businessman had taken a loan of more than Rs 800 crore from state-run banks and was defaulting in paying them back.
In a statement, Kothari said, “First of all, it is not a scam. I am not going anywhere. I am an Indian citizen and am very much in my hometown. Though banks have declared my company as a non-performing asset (NPA), I am not a defaulter. The matter is still sub judice with the National Company Law Tribunal (NCLT). I am regularly in touch with the banks and am constantly cooperating with them. I availed the loans and will repay them soon.”
As per sources, Kothari had taken a loan of more than Rs 800 crores from five government banks. Sources have confirmed that Allahabad Bank, Bank of India, Bank of Baroda, Indian Overseas Bank and Union Bank of India compromised their rules to render these loans to Kothari.
Allahabad Bank manager, Rajesh Gupta had said that if the party (Kothari) could not pay the loan, then the amount would be recovered by selling his properties.
Vikram Kothari is the brother of Deepak Kothari, owner of the famous mouth-freshener brand – Pan Parag. In the 1980s, Vikram started his stationery business under the brand name Rotomac.
When the family business was divided in the early 90s, Vikram got Rotomac, while his brother was given Pan Parag.