Rotomac Kothari owes various banks Rs 3,695-cr: CBI files FIR

News Network
February 19, 2018

New Delhi, Feb 19: The Central Bureau of Investigation (CBI) has registered a case against Rotomac pen promoter Vikram Kothari and his family in connection with a case related to the alleged swindling of Rs3,695 crore of bank loan funds, officials said here on Monday. The scam was earlier estimated at around Rs800 crore.

The case against Kanpur-based Rotomac Global Pvt. ltd, its director Vikram Kothari, his wife Sadhana Kothari, and son Rahul Kothari and unidentified bank officials was filed on a complaint received from Bank of Baroda, they said.

The agency searched three locations in Kanpur, including Kothari’s residence and office premises. There have been no arrests in the case yet, CBI spokesperson Abhishek Dayal categorically said. He said Kothari, his wife and his son are being examined by the CBI, which is conducting the searches.

The Enforcement Directorate (ED) has also registered a money laundering case against Kothari and his family members in connection with the alleged bank loan fraud of Rs3,695 crore, officials said. The case was filed under the Prevention of Money Laundering Act (PMLA), after studying the CBI FIR that was registered yesterday.

The ED, the officials said, would probe if the funds obtained through the alleged fraud were laundered and if the proceeds of the crime were subsequently used by the accused to create illegal assets and black money.

According to the complaint from Bank of Baroda, the conspirators allegedly cheated a consortium of bank loans of Rs3,695 crore, including the interest component, officials said. The principal involved is Rs2,919 crore.

This is the second major financial scam to break out after the sensational Rs11,400 crore fraud allegedly committed by billionaire jewellery designer Nirav Modi and his uncle Mehul Choksi, who is a promoter of Gitanjali group of companies. Both fled the country before the Punjab National Bank realised the depth of the alleged crime. 

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News Network
May 4,2020

New Delhi, May 4: Rebutting the Congress' criticism, the BJP said on Monday that the railways has subsidised 85 per cent of ticket fare for special trains being run for migrant workers and the state governments have to pay the remaining 15 per cent.

The ruling party also accused the Congress of promoting indiscriminate movement of people which, it said, would lead to "faster spread" of coronavirus infection "just like we saw in Italy", and asked if this is what Sonia Gandhi wants.

The counter-charge from BJP leaders, including its spokesperson Sambit Patra and information technology department in-charge Amit Malviya, came after Congress president Sonia Gandhi hit out at the central government for making migrants pay for their train fare and asked her party's state units to pick the tab.

Congress leader Rahul Gandhi also took a swipe at the railways, saying, on one hand, it is seeking ticket fare from people stranded in various states while on the other it is donating Rs 151 crore to the PM-CARES Fund.

Responding to him, Patra said, "Rahul Gandhi ji, I have attached guidelines of MHA which clearly state that 'No tickets to be sold at any station'. Railways has subsidised 85% & state govt to pay 15%. The state govt can pay for the tickets (Madhya Pradesh's BJP govt is paying). Ask Cong state govts to follow suit," Patra tweeted.

The BJP leader further clarified that for each 'Shramik Express', special trains being run for migrants to take them back to their native places during the lockdown, about 1,200 tickets to the destination are handed by the railways to the state government concerned.

State governments are supposed to clear the ticket price and hand over the tickets to workers, he said.

He said the BJP government in Madhya Pradesh is doing so and asked Rahul Gandhi to tell the Congress-ruled states to follow suit.

Hitting out at Sonia Gandhi, Malviya tweeted, "Congress is obviously upset at how well India has handled Covid. They would have ideally wanted a lot more people to suffer and die. Promoting indiscriminate movement of people would lead to faster spread of infection, just like we saw in Italy. Is this what Sonia Gandhi wants?"

BJP MP Subramanian Swamy claimed that migrant workers returning home will not have to pay money as the rail travel will be free from now onwards.

"Talked to Piyush Goyal office. Govt will pay 85% and State Govt 15%. Migrant labour will go free. Ministry will clarify with an official statement," he tweeted.

BJP Congress Coronavirus COVID-19 Coronavirus lockdown Italy Sonia Gandhi Rahul Gandhi Sambit Patra Amit Malviya Subramanian Swamy Piyush Goyal

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Agencies
May 30,2020

New Delhi, May 30: The Congress on Friday described the first year of the Modi government as a "year of disappointment, disastrous management and diabolical pain".

Congress leader K C Venugopal said the six years of the Modi dispensation have seen fraying of bonds of empathy, fraternity and brotherhood with increase in acts of communal and sectarian violence.

Congress chief spokesperson Randeep Surjewala said that at the end of six years, it appears the Modi government is at war with its people and is inflicting wounds on them, instead of healing them.

"It is inflicting wounds on Mother India," he said.

"This government is trying to fill coffers of the select rich and is inflicting pain on the poor," Surjewala said.

On the BJP's charge of the Congress playing politics over the COVID-19 crisis, Venugopal said the opposition party did not indulge in any politics and gave suggestions instead.

"Being a responsible opposition, it is our duty to raise the problems faced by the common people. As opposition, we highlighted the failures of the government," he said.

Venugopal said the government "is totally insensitive" to the plight of migrant labourers and farmers.

Surjewala also demanded that a virtual session of Parliament be convened immediately to discuss pressing issues and the due process be set in motion for holding of meetings of various parliamentary committees.

Modi and his cabinet had taken oath on this day last year for a second term in office.

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Agencies
January 9,2020

The World Bank says that a lack of credit and drop in private consumption have led to a gloomy growth outlook for India with a steep cut in growth rate for the current fiscal year and only a modest gain projected for the next year.

India's growth rate is forecast to be only 5 per cent for the current fiscal year, weighed down by a growth of only 4.5 per cent in the July-September quarter, according to the 2020 Global Economic Prospects report released on Wednesday.

"In India, [economic] activity was constrained by insufficient credit availability, as well as by subdued private consumption," the Bank said.

The growth rate is forecast by the Bank to pick up to 5.8 per cent in the next fiscal year and to 6.1 per cent in 2021-22.

India's growth rate was 6.8 per cent in 2018-19.

The 5 per cent growth rate projection for the current financial year is a sharp cut of 2.5 per cent from the 7.5 per cent forecast made by the Bank in January last year, toppling it from the rank of the world's fastest growing economy.

India's performance follows a global trend of lowered growth weighed down by developed economies.

The report estimated world economic growth rate to be only 2.4 per cent last year and forecast it to edge up 0.1 per cent to 2.5 per cent in the current year.

Even with the lower growth rate of 5 per cent in the current fiscal year and 5.8 per cent forecast for the next, India holds the second rank among large economies, behind only China with an estimated growth rate of 6.1 per cent for 2019 and 5.9 per cent this year.

The report blamed "weak confidence, liquidity issues in the financial sector" and "weakness in credit from non-bank financial companies" for India's slowdown.

The Bank predicated India's recovery to 5.8 per cent in the coming financial year for India but "on the monetary policy stance remaining accommodative" and the assumption that "the stimulative fiscal and structural measures already taken will begin to pay off."

It also warned that sharper-than-expected slowdown in major external markets such as United States and Europe, would affect South Asia through trade, financial, and confidence channels, especially for countries with strong trade links to these economies."

The Bank said that the growth of advanced economies was 1.6 per cent last year and "is anticipated to slip to 1.4 per cent in 2020 in part due to continued softness in manufacturing."

In contrast the growth of emerging market and developing countries is expected to accelerate from 3.5 per cent last year to 4.1 per cent this year, the report said.

In South Asia, Bangladesh is estimated to have the highest growth rate of 7.2 per cent in the current fiscal year, although down from 8.1 per cent last fiscal year.

But its higher regional growth rates are coming off a lower base with a per capital gross domestic product of $1,698 compared to $2,010 for India.

Bangladesh is expected to grow by 7.3 per cent in the next financial year.

Pakistan's growth rate is estimated at only 2.4 per cent in the current fiscal year and is projected to rise to 3 per cent in the next, according to the Bank.

The Bank blamed monetary tightening in Pakistan for a sharp deceleration in fixed investment and a considerable softening in private consumption for the fall in growth rate from 3.3 per cent in the 2018-19 fiscal year.

Sri Lanka's growth rate was estimated to be 2.7 per cent last year and forecast to grow to 3.3 per cent this year.

Nepal grew by an estimated 6.4 per cent in the current fiscal year and will rise to 6.5 per cent in the next.

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