Rotomac loan default case: Vikram Kothari and son denied bail
In connection with the alleged Rs. 3,695 crore willful loan default case, a CBI court has rejected the regular bail pleas of Rotomac Global promoter, Director Vikram Kothari and his son Rahul. On 7 March, the court had turned down Vikram's interim bail plea, too. CBI had arrested the duo accused in Delhi on 23 February and since then they have been in jail.
The accused are in judicial custody
The CBI court had on 24 February allowed their police remand for interrogation purpose in its custody. The CBI remand period expired on 7 March, after which judge MP Chaudhary had taken Kothari under judicial custody and sent him to jail. Meanwhile, both the accused moved bail pleas but the court refused them bail, stating offense was serious and accused did not deserve bail.
What exactly is the Rotomac case?
According to the prosecution, a consortium of seven banks led by Bank of India extended loans worth Rs. 2,919cr to Rotomac Global Pvt Limited from 2008 onwards. Rotomac's Directors allegedly cheated banks by diverting the funds in a conspiracy with unidentified bank officials, said CBI's FIR. The accused also diverted credits sanctioned for an export order to Singapore's Bargadia Brothers Private Limited, it added.
