CBI questions ex-CMD of Bank of Baroda, 5 others in Rotomac fraud

NEW DELHI: The Central Bureau of Investigation is wondering, for previous 3 days, former Chairman-cum-Managing Director – M D Mallya, two former government directors– V Santhanaraman and R K Bakshi, and 3 different former officials of Bank of Baroda in Rs three,695 crore fraud dedicated by Rotomac promoter Vikram Kothari.

Sources stated that Mallya, two EDs, a common manager, a deputy common manager and one board director are being wondered about the loans given to Kothari’s firms at the foundation of bogus claims that he had to make bills to his consumers and providers in Dubai, Sharjah and Hong Kong. It grew to become out that the consumers and providers indexed by Rotomac didn’t exist in those countries.

After registering a case in February, CBI had arrested Vikram Kothari Kothari and his son Rahul Kothari as they have been no cooperating and didn’t disclose main points of the shell firms and where was the mortgage cash used.

It has been alleged that Rs 2,919 crore was siphoned by the Kotharis, which along side penalties reached Rs three,695 crore. A consortium of seven banks led by Bank of India gave him loans 2008 onwards with BoI's exposure being Rs 754 crore. Among different lenders, Bank of Baroda had advanced Rs 456.63 crore, Indian Overseas Bank Rs 771 crore, Union financial institution of India Rs 459 crore, Allahabad Bank Rs 330 crore, Bank of Maharashtra Rs 50 crore, Oriental Bank of Commerce Rs 97 crore.

Kothari were given loans dispensed at the foundation of foreign letters of credit (FLCs) at the pretext of making bills to his consumers and providers in places like Dubai, Sharjah and Hong Kong. It was found that Kotharis equipped incomplete paperwork or photocopies of bills of loading to the banks at the pretext that authentic papers have been sent to the importer.

The banks have alleged that Rotomac did not attach the packing listing, obligatory insurance copies of products, certificates of beginning of products, or the inspection certificates from third parties while filing paperwork to it. When financial institution officials visited Rotomac's providers and consumers in a foreign country, they discovered that the import/export trade was allegedly operating via shell firms.

The banks have additionally claimed that Rotomac violated Foreign Exchange Management Act laws and worked for rate of interest differential in native and foreign currency echange in the guise of trade with no need any authentic trade transactions.

The Rotomac fraud got here to light when Rs 13,578 crore Punjab National Bank scam was unearthed in February this 12 months.

The banks in Rotomac case felt that Kotharis might flee the country and asked CBI to investigate him.
CBI questions ex-CMD of Bank of Baroda, 5 others in Rotomac fraud CBI questions ex-CMD of Bank of Baroda, 5 others in Rotomac fraud Reviewed by kailash soni on April 17, 2018 Rating: 5
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