ED notifies exit ports about Rotomac promoter Kothari

ED notifies exit ports about Rotomac promoter Kothari

ED notifies exit ports about Rotomac promoter Kothari

The agency searched three locations in Kanpur, including Kothari's residence and office premises.

After the CBI and the ED, the Income Tax Department has stepped up action against the Rotomac group and its promoters, attaching 11 bank accounts in connection with an alleged tax evasion probe against them, officials said yesterday.

Union Bank of India and Indian Overseas Bank also informed about certain lending to the group as consortium partners and that their loans had turned NPA in the past. For instance, Bank of Baroda sanctioned a loan of Rs 34 crore for an export order from Singapore-based Starcom Resources PTE for a supply of 15,700 tonnes of wheat. Earlier this morning, CBI spokesperson Abhishek Dayal said that there were no arrests in connection with the case as yet.

The revelation is part of the complaint Bank of Baroda (BoB) has made to the CBI. The amount along with interest and liabilities for the company has swelled to Rs3,695 crore, the CBI alleged.

Canadian Prime Minister to Meet Capt. Amarinder Singh for 15 minutes tomorrow
PM Modi will hold bilateral talks with Trudeau on February 23 following which a number of agreements are expected to be signed. Earlier in the day, the Canadian Prime Minister arrived at Amritsar's Golden Temple, along with his wife and children.

Vikram Kothari, owner of Rotomac, is being investigated for defaulting on over Rs. 3,700 crore in loans from government banks.

Requesting urgent action, BoB stated that "public money of the bank is at stake", and the company directors' escape overseas will result in "various other legal intricacies, such as extradition...". Three bank accounts of the group were attached in January previous year by the department. The probe agency questioned Kothari, his wife and his son. As per the allegations, in a clear violation of Fema (Foreign Exchange Management Act) Rules, he used loans availed for export to help his Kanpur-based company.

After the company and its directors were declared wilful defaulters, the bank had reported the fraud to the Reserve Bank and a complaint lodged with the CBI, ED and Directorate of Revenue Intelligence, the filing said. Money remitted to suppliers for procurement of goods for export disbursed through Packing Credit Account was settled from remittances received from third parties, not related to export transactions, the CBI also said. He allegedly created many fake companies by furnishing forged documents to seek loans from these banks.

Related news