New Delhi: The Central Bureau of Investigation (CBI) has registered a case against Kanpur-based Rotomac Global and its directors in connection with the alleged fraud of Rs 750.54 crore involving the Indian Overseas Bank (IOB), as reported by news agency PTI. The pen maker owes a total of Rs 2,919 crore to a consortium of seven banks led by the Bank of India. Indian Overseas Bank's share in this dues is 23 percent.
The probe agency has registered a case against the company and its directors Sadhna Kothari and Rahul Kothari under IPC sections related to criminal conspiracy (120-B) and cheating (420), besides various provisions of the Prevention of Corruption Act.
The company is already under the scanner of the CBI and the Enforcement Directorate based on complaints from members of the consortium of banks.
In its complaint to the CBI, Indian Overseas Bank alleged that the company was sanctioned a non-fund-based credit limit of Rs 500 crore on June 28, 2012.
Whereas, the account was declared a non-performing asset (NPA) on June 30, 2016, after defaulting on dues of Rs 750.54 crore.
The bank alleged that it had issued 11 letters of credit (LCs) to meet the foreign trade requirements of the company. All these letters were transferred, which amounts to Rs 743.63 crore.
The bank alleged that the absence of documents casts doubt on the authenticity of merchant ships and voyages claimed in the bills of lading.
The forensic audit conducted by the bank indicated alleged manipulation of books of accounts and non-disclosure of liabilities arising out of LCs.
Irregularities have also been noticed in the sales contracts, bills of lading and related voyages in the audit.
It said that 92 per cent of the total i.e. Rs 26,143 crore was sold to the same owner and four parties to the group.
"The major supplier to these parties is Rotomac Group, whereas the major buyer for these parties is Bunge group. The major seller of products to Rotomac group is Bunge group. All the four overseas customers have linkage with the group," the bank alleged.
The company allegedly defrauded the bank and diverted funds. This caused financial loss to the bank and the company itself wrongfully made a profit of Rs 750.54 crore. It has not yet been recovered.
(With PTI Inputs)