National
Rotomac took Rs 2,919 cr loan for wheat export but failed to execute business: CBI (Second Lead)
By Rajnish Singh
New Delhi, Feb 19 (IANS) Rotomac Global Private Limited cheated a consortium of banks to the tune of Rs 3,695 crore (including interest) by siphoning off loans sanctioned to the company for procurement of wheat and other goods for export.
No export was undertaken, though, according to officials of the Central Bureau of Investigation (CBI) who referred to details given in the Bank of Baroda complaint.
The central agency filed an FIR on Sunday night in the case after getting a complaint against the Rotomac Pen company’s chief Vikram Kothari, his wife Sadhana and son Rahul. The complaint said that the consortium of seven banks had extended 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.
Kothari had obtained Rs 2,919 crore from the consortium of seven banks — Bank of India (Rs 754.77 crore), Bank of Baroda (Rs 456.63 crore), Indian Overseas Bank (Rs 771.07 crore), Union Bank of India (Rs 458.95 crore), Allahabad Bank (Rs 330.68 crore), Bank of Maharashtra (Rs 49.82 crore) and Oriental Bank of Commerce (Rs 97.47 crore), the FIR by the CBI said.
CBI Spokesperson Abhishek Dayal quoting Bank of Baroda complaint said: “Rotomac cheated the consortium of banks by siphoning off bank loans.”
Interestingly, the official said Rotomac was working for interest rate differential in local and foreign currency. “Number of front and fictitious companies were formed to carry out illegal activities by Rotomac which submitted forged documents to obtain the money from the banks,” Dayal said.
The official said the credit disbursed and sanctioned to the company was utilised for the purposes other than executing export orders.
“For example, credit sanctioned for export order received from Singapore for supply of wheat was diverted to a Singapore-based firm Bargadia Brothers Pvt Ltd but the money was later remitted back to Rotomac,” he said.
“In other cases, the money disbursed by bank for procurement of goods and some other export materials was not utilised for this purpose and no export order was executed by the Rotomac.”
The official said “this misappropriation of funds” violated the FEMA (Foreign Exchange Management Act) guideline.
Bank of Baroda also alleged in its complaint that “most of the transactions of Rotomac are with limited number of buyers, sister companies and sellers and no genuine business transactions were carried out, according to other CBI official who did not want to be named.
The CBI FIR named Kothari, his wife, son, his firm Rotomac, some unidentified bank officials and private persons who have been booked on charges of criminal conspiracy, cheating and forgery under the Indian Penal Code and Prevention of Corruption Act.
The CBI on Monday raided several locations in Kanpur in connection with the loan default by the Rotomac and its directors. The CBI also sealed a residential premises and an office of Rotomac in New Delhi.
Coming close on the heels of the Rs 11,300 crore Punjab National Bank’s fraud, the Rotomac case that surfaced on Sunday had fanned speculations that Kothari too, might try and flee the country. However, the CBI could reach Kanpur and question the three accused.
(Rajnish Singh can be contacted at [email protected])
–IANS
rak/hs
Lucknow: Vishal Singh, a renowned social worker from Lucknow, also known as Foodman, has once again made India proud. He was honored by the Happy Hands Gloves Cooperative Limited Company in Korathai, Thailand, for his work with the Hunger Free World Mission.
The Hunger Free World Mission’s meeting was held in Korathai, Thailand, under Vishal Singh’s leadership. Representatives from several countries, including Mr. Raja Dwivedi (Managing Director of Happy Hands Gloves Limited), Thailand Coordinator Mr. Raja Mishra, and member Mr. Varun Singh, attended the event.
Under Vishal Singh’s leadership, the attendees took a pledge to work together toward creating a hunger-free world.
Speaking on the occasion, Vishal Singh explained that the main goal of the Hunger Free World Mission is social participation. He said the mission is not just about feeding people but also about meeting other basic needs of those who are struggling. The mission focuses on helping families of terminally ill patients in hospitals by providing food and shelter. It also works to fulfill essential needs like education, jobs, and care for the elderly.
For the last 16 years, the Vijay Sri Foundation has been providing free services, benefiting thousands of people. Vishal Singh highlighted that the mission aims to gain global recognition like other organizations such as WHO, WWF, and Red Cross, which work for social causes.
During this meeting, Vishal Singh was appointed as the Chairman of the Hunger Free World Mission by representatives from various countries. They also discussed holding regular meetings in different countries to push the mission forward.
Business tycoon Dr. Abhishek Verma has also supported this humanitarian mission, vowing to promote the idea of “Seva Parmo Dharma” (Service is the highest duty) worldwide. Vishal Singh praised him, stating that people like Dr .Abhishek Verma inspire others to work for the betterment of society.
Recently, Romania’s Ambassador, Mr . Daniela Sezonov Ţane, invited Vishal Singh to the Romanian Embassy in Delhi, where they discussed the mission in detail. Impressed by his humanitarian work, she honored Vishal Singh and invited him to Romania to take the mission forward .
Food man Vishal Singh has been serving the people of India for the past 16 years. Through the Vijay Sri Foundation, he provides free meals to cancer patients & their families ,shelter, and education for women & children along with running free old-age homes in Lucknow.
In addition to his humanitarian work, Vishal Singh also addresses issues like crime and corruption through his role as Chairman of Seva Path Media and Managing Director of Vijay Sri Foundation.
During the COVID-19 pandemic, Vishal Singh and his team worked tirelessly to provide food and help to the needy, including starving children, elderly citizens, and pregnant women. Despite contracting the virus himself, he continued to assist others after his recovery. He even created a life-saving oxygen regulator using household items, which was praised by doctors both in India and abroad.
In his address at the meeting, Vishal Singh spoke about his mission to create a hunger-free world. He pointed out that India’s large population, along with issues like unemployment and poverty, has caused the country to fall on the Hunger Index. He urged people to contribute just one handful of grains daily to help create a hunger-free world.
He concluded by saying that through social participation, we can empower the people around us, meet their basic needs, and work together to build a stronger, more prosperous, and developed society.
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