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.
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Justice Swarana K Sharma starts contempt case against Kejriwal, Manish Sisodia over excise posts
New Delhi (PTI): Delhi High Court judge Justice Swarana Kanta Sharma on Thursday initiated criminal contempt proceedings against AAP leaders Arvind Kejriwal, Manish Sisodia, Durgesh Pathak, Sanjay Singh, Saurabh Bhardwaj and others over their "vilifying" social media posts against her in relation to the excise policy case.
Justice Sharma said the former Delhi chief minister "orchestrated a calculated campaign" of vilification against her on social media instead of pursuing his legal remedies and clarified that the CBI's petition against the discharge of all accused persons would now be taken up by another bench.
The judge took exception to several social media posts by the proposed contemnors that attributed "political allegiance" to her and allegedly targeted her by posting a misleading "edited" video of a speech given by her at an educational institution in Varanasi.
"Arvind Kejriwal sought to destroy my reputation instead of availing legal remedies after I refused to recuse and a deliberate attempt to lower the court's authority can't be permitted in guise of free speech," Justice Sharma said.
She clarified that she was not recusing herself but was only transferring the case to another bench as she has initiated the contempt proceedings.
Solicitor General Tushar Mehta, appearing for CBI, thanked Justice Sharma for upholding the institution's dignity.
