Vikram Kothari, the promoter for Rotomac Pen in Kanpur is being alleged of defrauding a sum of Rs. 800 crores. Reports state Kothari took multiple loans from different public sector banks.
The banks include Bank of India, Allahabad Bank, Union Bank of India and Indian Overseas Bank. Recently local reports suggested Kothari had fled the country. However, Vikram Kothari clarified the rumors and said, “I am a resident of Kanpur and I will stay in the city. However, I do have to travel to foreign countries for business purposes.”
Mr. Kothari is accused of taking loans from banks and failing to pay back the required amount. From the Union Bank in Mumbai, Kothari took a loan of Rs. 485 crores and Rs. 352 crores from Allahabad Bank in Kolkata. A year later Kothari did not pay the interest or the loan.
Last year, Bank of Baroda declared Rotomac Global Pvt., Ltd., as a wilful defaulter. Rotomac then went on to move the Allahabad High Court to remove their name from the list of wilful defaulters. The Court removed Rotomac from the list stating it was investigated and the company was clean.
But last year in 2017, Rotomac was again declared a wilful defaulter by an authorized committee. The committee filed the order based on the procedures by the Reserve Bank of India.
