CBI books pen maker Rotomac Global in Rs 750 crore bank fraud case
New Delhi, Nov 16: The CBI has booked Kanpur-based Rotomac Global and its directors for alleged fraud of Rs 750.54 crore linked to Indian Overseas Bank, officials said on Wednesday.
The company, which was in the business of writing instruments, has a total outstanding of Rs 2,919 crore against a consortium of seven banks led by Bank of India in which Indian Overseas Bank has an exposure of 23 per cent.
The agency has booked the company and its Directors - Sadhna Kothari and Rahul Kothari - under IPC sections related to criminal conspiracy (120-B) and cheating (420), besides various provisions of the Prevention of Corruption Act.
The company is already facing multiple investigations by the CBI and the Enforcement Directorate on the basis of complaints from consortium members.
In its complaint to the CBI, now a part of the FIR, the Indian Overseas Bank alleged that the company was sanctioned a non-fund-based limit of Rs 500 crore on June 28, 2012.
The account was declared a non-performing asset on June 30, 2016, with an outstanding of Rs 750.54 crore after default on payments.
The bank alleged it had issued 11 Letters of Credit (LC) to meet the company's foreign trade requirements, which all got devolved involving an aggregate amount of Rs 743.63 crore, leaving no security for the bank.
The company did not produce the complete set of documents for the trade carried out by it, and all the LCs were issued favouring two parties -Fareast Distributors and Logistic P Ltd and RBA Venture Ltd.
The bank alleged that in the absence of documents, doubts are raised on the authenticity of the trade vessel and voyages claimed in the bills of lading.
The forensic audit conducted by the bank pointed to alleged manipulation in account books and non-disclosure of liabilities arising from LCs.
The audit also found irregularities in sale contracts, bills of lading and corresponding voyages.
It pointed out that 92 per cent of total sales, to the tune of Rs 26,143 crore, were made to four parties of the same owner and group.
"The major supplier to these parties is Rotomac Group, whereas the major buyer for these parties is Bunge group. The major seller of products to Rotomac group is Bunge group. All the four overseas customers have linkage with the group," the bank alleged.
The forensic audit "substantially flagged" various indicators which point out that the company carried out no genuine business transaction.
The company allegedly cheated the bank and fraudulently siphoned off funds, causing financial loss and wrongful gain to itself to the tune of Rs 750.54 crore, which is still to be recovered from the suspects.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Comedian Shyam Rangeela files nomination from Varanasi LS seat on last day
Varanasi: Comedian Shyam Rangeela has finally filed his nomination papers as an independent candidate from the Varanasi parliamentary constituency on Tuesday, May 14, the last day of filing papers.
Rangeela, who intended to contest against Prime Minister Narendra Modi had alleged on Monday that he was being denied a nomination from the seat, as he along with several other candidates were reportedly made to wait for filling papers on May 10th and May 13th.
Shyam Rangeela, taking to his official ‘X’ handle, wrote, "With your love and support, I have completed all the requirements as per the rules and submitted the nomination. I also have full faith in the democracy of this country. Now the next two-three days are crucial. Thank you all very much for your cooperation. My electoral future rests in the hands of all election officials who are the custodians of our democracy. With the hope that they all strengthen our faith, Yours Shyam Rangeela.”
Alongside, Shyam, BJP candidate Narendra Modi, Log Party's Vinay Kumar Tripathi, BJP's Surendra Narayan Singh, independent candidates Dinesh Kumar Yadav, Reena Rai, Neha Jaiswal, Ajit Kumar Jaiswal, Ashok Kumar Pandey, Sandeep Tripathi filed their nomination papers on Tuesday.
According to the Election Commision of India, a total of 41 candidates have filed nomination papers from the Varanasi constituency.
आप सभी के प्यार और सहयोग से नियमानुसार सभी आवश्यकताओं की पूर्ति करते हुए मैंने नामांकन दाखिल कर दिया है, मेरा इस देश के लोकतंत्र पर अभी भी पुरा भरोसा है । अब आगे के दो तीन दिन महत्वपूर्ण होंगे।
— Shyam Rangeela (@ShyamRangeela) May 14, 2024
आप सभी का सहयोग के लिए बहुत धन्यवाद ।
हमारे लोकतंत्र के पहरी सभी चुनाव अधिकारीयों के… pic.twitter.com/JyIoFGDNli
