Rotomac Chief, Son Sent to Transit Remand, IT Seizes 12 Accounts
A CBI court on 23 February sent Rotomac owner Vikram Kothari and his son Rahul to one-day transit.
A CBI court on 23 February sent Rotomac owner Vikram Kothari and his son Rahul to one-day transit remand, while the Income Tax department seized 12 bank accounts of the group and issued six prosecution against the businessman in connection with the Rs 3,695 crore loan default.
Additional Chief Metropolitan Magistrate Samar Vishal at the Patiala House courts passed an order for a day's remand after the Central Bureau of Investigation (CBI) sought a two-day transit remand to take the father and son to Lucknow. The duo will be produced before the court concerned in Lucknow on 24 February.
Kothari and his son were arrested on Thursday 22 February for an alleged default on loan repayment. This came after four days of questioning since the day the CBI filed the case against them and raided their residential and office premises in Uttar Pradesh's Kanpur.
Defence advocate Pramod Kumar Dubey had raised objections about jurisdiction of the court, saying that the accused should be produced before a sessions court, and not before a magisterial court.
The court then reserved its order till 2 pm on the issue of jurisdiction.
Meanwhile, an Income Tax department official said over 12 more bank accounts of the Rotomac Group have been attached, in addition to the 14 bank accounts attached earlier, and that six prosecutions have been sanctioned against Kothari.
The agency filed the FIR on 18 February night after getting a complaint against Kothari, his wife Sadhana and son Rahul, from the Bank of Baroda.
Kothari is the Chairman and Managing Director of Rotomac while his wife and son are Directors.
Kothari had allegedly obtained Rs 2,919 crore from 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 said.
Kothari, his wife, son, firm Rotomac, some unidentified bank officials, and private persons were booked on charges of criminal conspiracy, cheating, and forgery under the Indian Penal Code and Prevention of Corruption Act.
The Bank of Baroda complaint said that the banks had extended credit to the Kanpur-based firm and its related companies from 2008 onwards. The CBI had earlier confiscated several belongings of Kothari and his family, including laptops and mobile phones.
(The Quint, in association with BitGiving, has launched a crowdfunding campaign for an 8-month-old who was raped in Delhi on 28 January 2018. The baby girl, who we will refer to as 'Chhutki', was allegedly raped by her 28-year-old cousin when her parents were away. She has been discharged from AIIMS hospital after undergoing three surgeries, but needs more medical treatment in order to heal completely. Her parents hail from a low-income group and have stopped going to work so that they can take care of the baby. You can help cover Chhutki's medical expenses and secure her future. Every little bit counts. Click here to donate.)
(This story was auto-published from a syndicated feed. No part of the story has been edited by The Quint.)
(The Quint is available on Telegram. For handpicked stories every day, subscribe to us on Telegram)
We'll get through this! Meanwhile, here's all you need to know about the Coronavirus outbreak to keep yourself safe, informed, and updated.
Subscribe To Our Daily Newsletter And Get News Delivered Straight To Your Inbox.