Breaking: CBI arrests Rotomac owner, son for Rs 3695-cr bank fraud

New Delhi, Feb 22: The CBI on Thursday arrested Rotomac Pens owner Vikram Kothari and son Rahul Kothari for Rs 3,695 crore loan default case. The arrest came after four days of questioning. Both father and son were being questioned since Sunday. A consortium of seven banks had extended multi-crore 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.

The banks involved in the loan default, apart from BoB are Bank of India, Bank of Maharashtra, Indian Overseas Bank, Union Bank of India, Allahabad Bank and Oriental Bank of Commerce.

Today was the fourth consecutive day of their questioning. On the first two days the probe agency quized them and searched their residences and office premises in Kanpur, Uttar Pradesh. The Wednesday's questioning here went on for over nine hours as the Income Tax Department attached four immovable properties of Kothari, three in Kanpur and one in Ahmedabad, Gujarat. 

Besides the two, the pen company owner's wife Sadhana, staff and house keeper were also questioned after the Bank of Baroda filed a complaint of loan default against the Kotharis on Sunday night.

Several belongings, including their laptops and mobile phones, were confiscated by the agency on Tuesday.

News24Bureau with Agency Inputs