The CBI on Thursday arrested the owner of Rotomac Pens, Vikram Kothari and his son, Rahul Kothari in a case related to banking fraud worth Rs 3,696 crore. The arrest was made by the Bank Securities and Fraud Cell of the federal probe agency. Both are alleged to have cheated a consortium of seven banks.
The CBI sources said that Kothari senior was ‘non-cooperative’ adding that “he was not disclosing the details of shell companies, use of Rs 2,919 crore he took from the banks, bank officials and private persons who connived with him.”
Last year, Kothari was declared a willful defaulter. He had approached the Allahabad High Court contesting the declaration and even won but he allegedly still did not pay the money owed by him. This forced the authorities to auction the properties owned by him and other family members all throughout 2017.
Today’s arrests of Kotharis come amidst ongoing raids on and seizure of assets owned by Nirav Modi and Mehul Choksi in the Rs 11,400 crore PNB scam. On Thursday, the probe agencies had confiscated a fleet of expensive cars owned by Nirav Modi including including a Rolls Royce Ghost, Porsche Panamera, two Mercedes Benz GL class, three Honda cars and a Toyota Fortuner, on Thursday.
Vikram Kothari’s father Mansukhbhai Kothari had successfully set up the Pan Masala brand, which became an instant hit in India. In the late 90s, the family split and Vikram Kothari took control of pens and stationary business, while his younger brother was given to run Pan Parag business.