New Delhi: Rotomac Global Private Limited cheated a consortium of banks to the tune of Rs 3,695 crore (including interest) by siphoning off loans sanctioned to the company for procurement of wheat and other goods for export.

No export was undertaken, though, according to officials of the Central Bureau of Investigation (CBI) who referred to details given in the Bank of Baroda complaint.

The central agency filed an FIR on Sunday night in the case after getting a complaint against the Rotomac Pen company’s chief Vikram Kothari, his wife Sadhana and son Rahul. The complaint said that the consortium of seven banks had extended credits to the Kanpur-based firm and its related companies from 2008 onwards.

Kothari is the Chairman and Managing Director of Rotomac while his wife and son are directors of the company.

Kothari had obtained Rs 2,919 crore from the consortium of seven banks — Bank of India (Rs 754.77 crore), Bank of Baroda (Rs 456.63 crore), Indian Overseas Bank (Rs 771.07 crore), Union Bank of India (Rs 458.95 crore), Allahabad Bank (Rs 330.68 crore), Bank of Maharashtra (Rs 49.82 crore) and Oriental Bank of Commerce (Rs 97.47 crore), the FIR by the CBI said.

CBI Spokesperson Abhishek Dayal quoting Bank of Baroda complaint said: “Rotomac cheated the consortium of banks by siphoning off bank loans.”

Interestingly, the official said Rotomac was working for interest rate differential in local and foreign currency. “Number of front and fictitious companies were formed to carry out illegal activities by Rotomac which submitted forged documents to obtain the money from the banks,” Dayal said.

The official said the credit disbursed and sanctioned to the company was utilised for the purposes other than executing export orders.

“For example, credit sanctioned for export order received from Singapore for supply of wheat was diverted to a Singapore-based firm Bargadia Brothers Pvt Ltd but the money was later remitted back to Rotomac,” he said.

“In other cases, the money disbursed by bank for procurement of goods and some other export materials was not utilised for this purpose and no export order was executed by the Rotomac.”

The official said “this misappropriation of funds” violated the FEMA (Foreign Exchange Management Act) guideline.

Bank of Baroda also alleged in its complaint that “most of the transactions of Rotomac are with limited number of buyers, sister companies and sellers and no genuine business transactions were carried out, according to other CBI official who did not want to be named.

The CBI FIR named Kothari, his wife, son, his firm Rotomac, some unidentified bank officials and private persons who have been booked on charges of criminal conspiracy, cheating and forgery under the Indian Penal Code and Prevention of Corruption Act.

The CBI on Monday raided several locations in Kanpur in connection with the loan default by the Rotomac and its directors. The CBI also sealed a residential premises and an office of Rotomac in New Delhi.

Coming close on the heels of the Rs 11,300 crore Punjab National Bank’s fraud, the Rotomac case that surfaced on Sunday had fanned speculations that Kothari too, might try and flee the country. However, the CBI could reach Kanpur and question the three accused.

(IANS)

Nirav Modi,the kingpin behind the largest banking scam in the country’s history, has virtually wrung his arms in the air saying PNB’s overzealousness has shut the doors on his ability to clear the dues, which he claimed is much lower than the bank has gone public with.

In a letter Modi wrote on February 15/16 to the PNB management, a copy of which PTI has seen, he pegged the amount his companies owes to the bank under Rs 5,000 crore.

“The erroneously cited liability resulted in a media frenzy which led to immediate search and seizure of operations, and which in turn resulted in Firestar International and Firestar Diamond International effectively ceasing to be going-concerns.

“This thereby jeopardised our ability to discharge the dues of the group to the banks,” Modi, who left the country along with his family in the first week of January, wrote in the letter.

“In the anxiety to recover your dues immediately, despite my offer (on February 13, a day before the public announcement, and on 15,) your actions have destroyed my brand and the business and have now restricted your ability to recover all the dues leaving a trail of unpaid debts,”he said.

The letter also refers to the extended discussions between him, and between his representatives and the bank officers and also his emails on February 13 and 15, 2018.

It can be noted that PNB, the second largest state-run bank, had on February 14 informed the exchanges of detecting USD 1.77 billion fraud at its Brady House branch in Horniman Circle area of south Mumbai and named the firms led by Modi and his uncle Mehul Choksi’s Gitanjali Group and some other diamond and jewelry merchants as suspects.

The bank has also filed criminal complaints with CBI and the ED, both of which launched nationwide searches on dozens of offices and residences of the alleged fraudsters.

The bank has named Modi’s brother, his American wife Ami, and uncle Choksi besides some others in the FIR.

On the over Rs 11,000-crore loss claimed by PNB in the FIR, Modi said, “as you are aware, this is entirely incorrect and the liability of the Nirav Modi Group is substantially less. Even after your complaint was filed, in good faith I wrote to you saying please sell/allow me to sell Firestar Group, or their valuable assets, and recover the dues not just from Firestar Group, but also from the three firms.”

Valuing his domestic business at around Rs 6,500 crore, he said “this could have helped reduce/discharge the debt to the banking system,” but quickly added that this is not possible as all his bank accounts have been frozen and assets have been sealed or seized.

He goes on to state that PNB had time and again acknowledged that “the buyers credit facility has been extended by it to the three partnership firms since several years; that there has been no default on the part of any of these firms over all these years; that money has gone through PNB over all these years for the repayments of the advances given by the overseas bank branches under the buyers credit.

“That Firestar International and Firestar Diamond International have never been in default to any bank, and the bankers are fully secured”.

He also states that PNB has over the years been earning bank charges to the tune of crores of rupees on the buyers credit facility extended by PNB to the three partnership firms and that PNB has extended the money to the firm’s buyers as well from where also it has been receiving full payments, with interest and on time all, these years.

On the valuables that CBI/ED searches yielded Rs 5,649 crore, he said “these, and other assets of the group and the three firms could have settled all the amounts due to banks. However, now that stage appears to have passed.”

He concluded by requesting the bank to “be fair, and support my efforts to make good all the amounts that are found due by my group to all banks.”

Owning up everything, he said the bank has wrongly named his brother, who is not at all concerned with the operations of the three firms or other companies.

“My wife is not connected with any business operations at all and she has been wrongly named. My uncle is also wrongly named in this complaint since he has an independent and unconnected business and none of them are aware or concerned with my dealings with your bank.”

“Whatever may be the consequences I may face for my actions, the haste was, in my humble submission, unwarranted,” Modi conludes that he has requested the bank to permit payment of salaries to 2,200 employees from the balance lying in the current accounts.

(PTI)

Photo: PTI

For the first time in Karnataka, Some areas which have more number of women voters will have a dedicated all women polling station’ for the upcoming state assembly elections. Explaining the special features this year, Karnataka chief Electoral Officer Sanjiv Kumar said, “Setting up all women polling stations will be done in some selected places on pilot basis These polling stations will have women polling officers and women police personnel” he added.

The latest data available for 2018 says there are 4.96 voters, of which around 2.51 crore are men, Around 2.44 crore women and 4000 are transgender. However, the gender ratio for men and women has improved recently. In 2013, it was 1000:958 which has increased to 1000:972 now, according to the state electoral commission.

On Saturday, Sanjiv Kumar released a special logo for this year’s assembly election. The logo has special emphasis on inclusions – of women, nomads and minority voters, – making polling stations accessible to every accessible to every voter including the physically challenged and ethics – voting without fear or pressure from any party, He said as per the directives of the Election Commision, special summary revision was undertaken from November 30, 2017. During this special revision, People applied for new inclusions, deletions and modifications of names. We continue to take applications for deletion, inclusion, and modifications. The final roll will be printed on Feb 28. we will continue taking inclusions, but for deletion, it has to get approval from commission”, he said.

About the first time voters, he said this time its a record. In 2013 there were 7.18 lakh first-time voters and their age group was 18 and 19 years. This year, we have 15.42 lakh first-time voters” He added.

Writer, social activist and former minister for Kannada, Culture, and Department of Women & Child Welfare in the Government of Karnataka, B.T. Lalitha Naik has joined the newly launched All India Mahila Empowerment Party.

Naik, who has also served as an MLC (1986-1992) and MLA (1994-1999), said that she will work hard for the success of the party, under the leadership of party chief Dr. Nowhera Shaik.