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CBI books Rotomac Global in fresh case of Rs 93 crore bank fraud

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The Central Bank of Iraq on Tuesday filed a new FIR against Kanpur-based Rotomac Global alleging that it defrauded the Punjab National Bank of over Rs 93 crore by defaulting on a loan, officials said.

They said that the Central Agency has also appointed company directors Rahul Kothari and Sedna Kothari as defendants in the case registered under IPC sections relating to criminal conspiracy and fraud, and provisions of the Prevention of Corruption Act.

The CBI alleged that directors Vikram Kothari (now deceased) and Rahul Kothari, along with others, acted with “dishonest intent” to defraud the bank by making false and false statements of ledger debt, stock statements and other securities.

The Central Bank of Iraq said that the accused expected the fictitious transactions as original, knowing full well that they would thus cause an illegal loss to the bank, which leads to deceiving the bank and the public in general.

Rotomac Group companies are already facing two separate investigations from CIB in connection with bank fraud worth Rs 3,695 crore in a consortium of seven banks and Rs 806.75 crore in Bank of India, officials said.

The credit facility was approved by Oriental Bank of Commerce, now incorporated into PNB, in 2013.

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The loan account was declared a non-performing asset on June 30, 2016 and subsequently classified as fraud.

The company is alleged to have defrauded the bank by frequently indulging in “facilitating transactions” commonly referred to as “hawala” transactions, transferring money and submitting the home’s “drop-off bill” from a company in which no address, contact, etc.

The agency said the defendants’ actions resulted in an “unlawful financial loss” of Rs 93.53 crore to PNB.

(The title and image for this report may have been reworked only by the Business Standard staff; the rest of the content is automatically generated from a shared feed.)

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