The Kanpur-based company’s owner had taken a loan of more than Rs. 800 crore from over five state-owned banks.
After billionaire diamantaire Nirav Modi, another defaulter Vikram Kothari, the promoter of Rotomac Pen, has also allegedly gone abroad after swindling Rs. 800 crore from various public sector banks including Allahabad Bank, Bank of India and Union Bank of India, sources said.
The Kanpur-based company’s owner had taken a loan of more than Rs. 800 crore from over five state-owned banks.
Allahabad Bank, Bank of India, Bank of Baroda, Indian Overseas Bank and Union Bank of India compromised their rules to sanction loans to Rotomac, sources said.
Mr Kothari took a loan of Rs. 485 crore from Mumbai-based Union Bank of India and a loan of Rs. 352 crore from Kolkata-based Allahabad Bank.
A year later, Mr Kothari has reportedly not paid back either the interest or the loan.
Last year, Bank of Baroda (BoB), a consortium partner declared pen manufacturer Rotomac Global Pvt Ltd as “wilful defaulter”. The company moved the Allahabad High Court seeking removal of its name from the list of wilful defaulter.
A division bench comprising Chief Justice D B Bhosle and Justice Yashwant Verma had passed the order on a petition filed by the company, contending that it has been wrongly declared a “wilful defaulter” by BoB despite having “offered assets worth more than Rs. 300 crore to the bank since the date of default”.
Rotomac was declared a wilful defaulter vide an order dated February 27, 2017 passed by an authorised committee, as per the procedure laid down by the Reserve Bank of India.