CBI charge-sheets Rotomac promoters

The CBI on Monday filed its first chargesheet in the Rotomac loans case. The chargesheet was filed in the court of the special judge (Lucknow) against the company and its CMD Vikram Kothari and director Rahul Kothari.

Among others chargesheeted include the then AGM/branch head of Bank of Baroda, SK Upadhyay. Two other officials of Bank of Baroda have also been chargesheeted by the CBI.

The CBI has alleged in its chargesheet that the accused caused a loss of Rs 456.63 crore to the bank. The said loss was allegedly caused due to misutilisation of export packing credit limit and development of FLCs, says the chargesheet.


The agency had earlier arrested Rotomac Pens owner Vikram Kothari and his son Rahul in connection with the case. The probe agency, on February 19, had booked Rotomac Pens and its directors on charges of cheating and wilfully defaulting on loans.

Vikram Kothari, his wife Sadhana Kothari and son Rahul Kothari — all directors — were booked by the CBI on charges of cheating a consortium of seven banks led by Bank of Baroda. “Unknown bank officials and private persons” were also booked by the agency.

The agency had sealed the office of Vikram Kothari and his residence in New Delhi.

The criminal case was registered by the CBI on a complaint by Bank of Baroda. The bank, in February, had declared the company a wilful defaulter. The company had got an order in its favour but failed to repay the loans.

The company had taken a loan of more than Rs 800 crore from five state-owned banks. Bank of Baroda had alleged that the pen manufacturer, through its directors in criminal conspiracy with unknown bank officials, cheated the lender of Rs 616.69 crore.

The total outstandings of the members of the consortium of seven banks — Bank of India, Bank of Baroda, Indian Overseas Bank,Union Bank of India, Allahabad Bank, Bank of Maharashtra and Oriental Bank of Commerce — stand at about Rs 3,695 crore, including unapplied interest, by siphoning off bank loans disburbsed to the company, the agency said.