The CBI also sealed Kothari's Delhi residence and carried out raids there on Monday.
The Central Bureau of Investigation (CBI) on Monday conducted searches at the Kanpur home and offices of Rotomac Pens promoter Vikram Kothari over unpaid bank loans, an agency spokesperson said. The amount along with interest and liabilities for the company has swelled to Rs3,695 crore, the CBI alleged. On Feb. 18, he, along with wife Sadhana and son Rahul, was booked for conspiring with some bank officials to dupe seven banks of almost Rs3,700 crore ($574 million), a CBI official who didn't want to be identified, told Quartz. "I am not going to run away anywhere", he told reporters.
The Rotomac website states that Kothari heads Rotomac Exports Pvt Ltd, Kothari Foods and Fragrances, Crown Alba Writing Instruments, Mohan Steels Limited, RFL Infrastructure Pvt Ltd and Rave Entertainment Pvt Ltd, besides Group's real estate ventures at Kanpur, Lucknow, Dehradun and Ahmedabad.
The CBI which took over the probe pegged the fraud at Rs 2,919 crore. "Company submitted false and forged document and dishonestly induced bank to advance money", it said. He contested it in the Allahabad High Court and won but allegedly didn't pay his dues.
In February previous year, Kothari was declared a 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".
This is the second major financial scam to break out after the sensational Rs 11,400 crore fraud allegedly committed by billionaire jewellery designer Nirav Modi and his uncle Mehul Choksi, who is a promoter of Gitanjali group of companies.