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Rotomac Fraud Scam. The Rotomac Bank Fraud in India


Rotomac’s Consortium: Writing its way into the scam book with bank fraud!

 
Officer holding Rotomac Pen
Rotomac
Recently, the Central Bureau of Investigation (CBI) in India, booked  a businessman and his family. They are based in Kanpur. The other members of his family who have been charged are his wife and his son. The amount for which they have been charged is a staggering amount that is nothing less than INR 3,695 crore. It has been reported by the media that the loan amount taken by the family was advanced by a consortium of seven banks. The recipient of this loan goes by the name of Rotomac Global Pvt Limited. This is obviously the company that is owned by the Kanpur based businessman.
Showing Fraud Symbol for Frauds in India
Bank Fraud in India

PNB involvement in Rotomac Scam

Now, this is definitely not the first time that such a scam has taken place in India. While some of the other shocking cases that have surfaced in the nation are that of Vijay Mallya and several other instances that involve top Indian politicians and bureaucrats, the latest one was the PNB scam that was related to Nirav Modi. I’m sure that you must know about it. However, for those who have been living under a rock and are aware of what had transpired, keep reading ahead. To explain it to you in short, Nirav Modi and his allies had taken loans from the Punjab National Bank (PNB) which is a public sector bank operating in the nation. when they approached the bank again, they were asked for guarantee. However, they said that they had not needed to present any guarantee earlier either. This raised suspicion and it was noticed by a new employee of the bank that the official records had no mention of such a deal. That is when the matter was reported to the CBI and other officials from the banks were caught hold of who has allegedly transferred money without any legal procedure. Though the matter came to light, by the time the citizens of the nation came to know about it, Nirav Modi had already left the country and fled. He is a billionaire and a jewellery designer who was mainly involved in this scam with his uncle, MehulChoksi. At present he is living overseas and action has also been tried to take but the masses still have innumerable unanswered questions.
 
Symbol of Scam Alert
Scam is no Alert in India, its Routine. Need to Curb Bank Corruption that made Entire India Corrupt
Following the Nirav Modi case is this one. According to investigation and reports, Rotomac Global Pvt Limited is the company that had taken loans of INR 2,919 crore, starting from the year 2008. This was done by a consortium of banks that were headed by the Bank of India. However, this amount later went on to become INR 3,695 crores. This definitely included the interest that had to be paid on the sum taken as loan. If you are wondering how it is possible for the interest to be so high, then you must understand that there were repeated defaults on paying back the loan. This is exactly what has been explained by the officials.

The Banks Involved in Rotomac Scam

It must be noted here itself that a total of 7 banks have been involved the case. Read ahead to find a list of the names of the banks:
  ·      Bank of India
  ·      Bank of Baroda
  ·      Overseas Bank of India
  ·      Union Bank of India
  ·      Allahabad Bank
  ·      Bank of Maharashtra
  ·      Oriental Bank of Commerce

Keep reading to find a list of the loan that had been taken: (bank wise amounts)
 ·      Bank of India: INR 754.77 crore
 ·      Bank of Baroda: INR 456.63 crore
 ·      Overseas Bank of India: INR 771.07 crore
 ·      Union Bank of India: INR 458.95
 ·      Allahabad Bank: INR 330.68 crore
 ·      Bank of Maharashtra: INR 49.82 crore
 ·      Oriental Bank of Commerce: INR 97.47 crore

According to allegations put forward by the Bank of Baroda, the loans to the company were being extended from the year 2008. Now, you must also note that the Bank of Baroda was the first bank to officially come forward and make the complaint regarding the Kanpur based businessman, Vikram Kothari, his wife Sadhana Kothari, and his son, Rahul Kothari. Also, the Bank of Baroda has not spared its employees either. This implies that unidentified officials working for the ban have also been included in the complaint because the bank too realizes that such a scam of a large scale and this big an amount is not possible without the aid of internal workers.
 
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Loose Security in India Hence Only Scams, need to Beef up Security by Corrupt Bank Babus Prosecution
Three locations have been investigated so far. The aim is to find as many details as possible regarding the trio as well as their work. More details are likely to help the investigating team further. Also, it cannot be ascertained already that no other scam has been committed by the family. This is why rapid probe into the matter has been going on. This is the sole reason why the residence of the family as well as the office premises have been studied intensively so far. The three have been cross questioned by the CBI who is hell bent on reaching the core of the matter. This is why several sessions of inquiry have taken place and more such sessions are likely to follow. It is actually commendable at this point that unlike other offenders, this trio has not yet fled from the country to reside overseas and establish their name abroad.
 
Central Bureau of Investigation, India sign board
CBI Sign Board

The Stand of CBI in this Fraud

The spokesperson of CBI, Abhishek Dayal stated publicly that the total sum of the loan is INR 3,695 crores. In order to speed the process of recovery of this huge amount the home and the office premises of the Kotharis has been sealed and taken away. This means that they no longer have access to it and it not belongs to the bank since they failed to repay their loan.it is said that they actually managed to take so much loan because they stated false reasons and once they got hold of the money, they used it for different purpose other than the one stated.


Conclusion

Last but not the least, the trio has also been charged under the violation of Foreign Exchange Management Act, involvement of shell companies as well as the criminal breach of trust. 




 NB Review based on overall media information


 See also:
CoalGate Scam
 




Tags: CoalGate, Coal Gate, Scam, Scams in India, Rotomac Scam

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