The scam was earlier estimated to be around Rs 800 crore but in its complaint filed on Sunday, Bank of Baroda gave details of money disbursed to Rotomac over the years and modus operandi used by Kothari and others to cheat the banks.
"Since, this account (Rotomac) is of high value in this fraud case, we apprehend that directors/guarantors of the company may escape from the country to skip the legal/criminal proceedings", Bank of Baroda said in a complaint. The amount along with interest and liabilities for the company has swelled to Rs3,695 crore, the CBI alleged.
Department attached four immovable properties of the Rotomac Group of companies, in the latest development in the case.
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State-run lender Bank of Baroda on Tuesday clarified that it had an exposure of Rs 456.6 crore to Rotomac Global. There have been no arrests in the case yet, CBI spokesperson Abhishek Dayal categorically said.
Nirav Modi's escape overseas, within two years of Vijay Mallya similarly hoodwinking the law after allegedly defaulting on banks loans worth hundreds of crores, seems to have let panic loose on the banking sector, and investigators believe the complaint by Bank of Baroda (BoB) against Vikram Kothari of Rotomac could be a result of this panic. As per the allegations, in a clear violation of Fema (Foreign Exchange Management Act) Rules, he used loans availed for export to help his Kanpur-based company.
Kothari and son were questioned in Kanpur for the past two days but were asked to report in Delhi.
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"It added: "... In other cases money disbursed for procurement of goods for export was not utilised for this objective and no export order was executed by the company.
It is also alleged that the company was using shell companies for carrying out this alleged round tripping operation and had also submitted fake and forged documents to "induce" banks to advance money to it.
This scam comes close on heels of the Nirav Modi-PNB scam, where jeweller Nirav Modi and his uncle Mehul Chowksi failed to repay an amount of over Rs 11,300 crore that they owed to the Punjab National Bank.
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The bank also clarified that the company and its directors were declared as wilful defaulters past year.