CBI Booked at Kanpur Rotomac Global and its directors have charged Rs 750.54 crore Danger! In Indian Overseas Bank, officials said. company that was in Business A total of Rs 2,919 crore is owed against the consortium of seven banks led by Writing Instruments Bank of India in which Indian Overseas Bank has an exposure of 23 per cent.

The agency has registered a case against the company and its directors- Sadhna Kothari and Rahul Kothari under various provisions of the IPC besides sections related to criminal conspiracy (120-B) and cheating (420). Prevention of Corruption Act,

The company is already facing multiple investigations by the CBI and the Enforcement Directorate based on complaints from members of the consortium.

Indian Overseas is now a part of the FIR in its complaint to the CBI Bank It is alleged that the company was sanctioned a non-fund based limit of Rs 500 crore on June 28, 2012.

The account was declared a non-performing asset on June 30, 2016, with an outstanding of Rs 750.54 crore after defaulting on payments.

The bank alleged that it had issued 11 letters of credit (LC) to meet the overseas business requirements of the company, all involving an aggregate amount of Rs 743.63 crore, leaving no security for the bank.

The company did not produce the complete set of documents for the business done by it, and all the LCs were issued in favor of two parties – Forest Distributors and Logistic P Ltd and RBA Ventures Ltd.

The bank alleges that the absence of documents casts doubt on the authenticity of the merchant vessel and voyages claimed in the Bill of Lading.

The forensic audit conducted by the bank pointed out alleged manipulation of ledgers and non-disclosure of liabilities arising out of LCs.

Audit also noticed irregularities in sales contracts, bills of lading and related voyages.

It pointed out that 92 per cent of the total sales, amounting to Rs 26,143 crore, were made to the same owner and four parties in the group.

“The major supplier of these parties is Rotomac Group, while the major buyer of these parties is Bunge Group. The major seller of the products Rotomac Group Banj Group. All four have links with a group of overseas customers,” the bank alleged.

The forensic audit “substantially flagged” various indicators that indicate the company did not conduct any genuine business transactions.

The company allegedly defrauded the bank and fraudulently siphoned off funds, causing financial loss and wrongful gain to itself to the tune of Rs 750.54 crore, which is yet to be recovered from the suspects.