ED attaches Rotomac properties worth Rs 177 cr
New Delhi, May 29 : The Enforcement Directorate (ED) on Tuesday said it has attached Vikram Kothari owned Kanpur-based Rotomac Global's properties worth Rs 177 crore in connection with a money laundering case involving an alleged bank fraud amounting to Rs 3,695 crore.
The attached properties of the company and those of its directors are located in Uttar Pradesh's Kanpur, Gujarat's Ahmedabad and Gandhinagar, Uttarakhand's Dehradun and Maharashtra's Mumbai, an official of the financial probe agency said.
The ED's action comes under the Prevention of Money Laundering Act (PMLA), 2002, on the basis of a Central Bureau of Investigation's First Information Report.
The probe had revealed that the accused persons in the guise of merchants, without having any genuine business transactions, defaulted in meeting its payments obligation to the bank by diverting and siphoning off the funds.
"The investigations have revealed that Rotomac Global Pvt. Ltd. has indulged in merchanting trade with limited number of buyers and seller, wherein it used to receive back the discounted LC (letters of credit) amount from the overseas beneficiary after deduction of 1.5 to two per cent commission by them either directly into the accounts of Rotomac group companies or into the accounts of overseas companies controlled by Vikram Kothari," the agency said in a statement.
"Their discounted LC amount thereafter have been used by Rotomac Global Pvt. Ltd. for other business activities such as FDR, iron ore purchase and investment in real estate," it said.
The ED and the CBI had filed a case in February after the Bank of Baroda filed a complaint against Kothari, his wife Sadhana, his son Rahul and some unidentified bank officials and private persons.
Kothari is the Chairman and Managing Director of the Rotomac group while his wife and son are directors.
According to the CBI FIR, Kothari had obtained Rs 2,919 crore from various banks, including from the 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).
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316 domestic LPG cylinders used for commercial purposes seized in Karnataka
Bengaluru (PTI): The Karnataka Food and Civil Supplies Department said on Saturday that authorities have seized 316 domestic LPG cylinders allegedly being used for commercial purposes across the state and registered cases against those involved.
Also, a case has been registered against a gas agency which was illegally refilling gas cylinders.
"Following the minister's (K H Muniyappa) instructions to take appropriate legal action if domestic cylinders are used for commercial purposes, cases have been registered under the Essential Commodities Act and seizures have been made across the state, including 45 in Peenya and 209 in Chikkajala of Bengaluru, 3 in Shivamogga district, 46 in Davanagere and 13 in Yadgir district," the department said in a release.
Similarly, a case has been registered against a gas agency shop in KGF, Kolar district, which was conducting illegal refilling of gas cylinders, it said.
As per the central government guidelines, 20 per cent of the total commercial cylinders will be distributed to hospitals, schools, educational institutions, airports, railway stations, bus stands, canteens, important temples for distribution of prasad, government offices, old age homes, and important private sector offices on priority, the department said.
Further, it said that a total of 3,86,363 domestic cylinders (14.2 kg) and 6,371 commercial cylinders have been distributed across the state today. Steps have been taken to ensure that there is no problem with the supply of domestic cylinders, it added.
