SUBMITTED BY- APURVA JAIN

ROLL NO.- 1710

After Neerav Modi case..
Now another public sector bank fraud case..

ROTOMAC SCAM..
Vikram Kothari
 Son of Mansukhlal Kothari, founder of Pan Parag.
 Director of Rotomac Company.
 After the slow down in Rotomac Company, he started
import and export business.
 Scam was initiated in import and export business.
 LOAN AMOUNT
Unpaid loans Interest and Total
Penalties

Rs 2919 Cr + Rs 776 Cr = Rs 3695 Cr

Loan from 7 Public sector

Banks..
EXPOSURE OF BANKS
 ISSUE
 Kanpur based Rotomac Global Private Limited has
arrange a scam of a Rs 3695 crore by means of
WILFUL LOAN DEFAULT to multiple task.

WILFUL LOAN DEFAULT

 SIPHONING OF FUNDS
 Loans were being siphoned off by diverting them from
the purpose for which they were taken.

 Money disbursed by the banks for procurement of

goods to export was not utilized and no export order
was executed by the company.
 DIVERSION OF FUND
 Utilization of short term working capital for long term
purposes.

 No. of fake companies were formed to carry out illegal

activities by Rotomac to obtain the money from the
banks.
 ROUND TRIPPING OF LOAN
 Loans for exports were round tripped from abroad and
loans taken for purchasing export goods were used
domestically without executing any export order.
 Round tripping of money amounts to
misappropriation of fund.
 Scam was continued for 8 to 9 years.
 CASE PROGRESS
 Bank of Baroda was the first one to declare it fraud.
 CBI carried out searches in Kanpur with Bank of
Baroda.
 Case was filed against the Vikram Kothari, his son,
wife and bank officers.
 Vikram Kothari, His wife and son were examined in
New Delhi.