Rotomac owner case: Court grants one-day transit remand to CBI

Duo produced before Additional Chief Metropolitan Magistrate Samar Vishal and the agency sought two-day transit remand from the court to take them to Lucknow

New Delhi: A Delhi court on Friday granted the CBI’s plea for one-day transit remand for Rotomac owner Vikram Kothari and his son Rahul to produce them before a Lucknow court in connection with a Rs36.95 billion (Dh2.10 billion) loan default case.

The duo was produced before Additional Chief Metropolitan Magistrate Samar Vishal and the agency sought two-day transit remand from the court to take them to Lucknow.

The court allowed a day’s transit remand for both the accused, who were arrested on Thursday for alleged default on loan repayment.

A consortium of seven banks had extended loans worth Rs29.19 billion to Rotomac Global Pvt Limited 2008 onwards, according to a CBI FIR. The amount swelled to Rs36.95 billion, including the accrued interest, because of repeated defaults on payment, the agency has claimed.

The CBI initiated the action on the complaint of Bank of Baroda, a member of the consortium led by Bank of India, which had approached the agency fearing that Kothari may flee the country like Nirav Modi and his uncle Mehul Choksi.

The principal exposure of the banks regarding the loan is Bank of India Rs7.55 billion, Bank of Baroda Rs4.57 billion, Overseas Bank of India Rs7.7 billion, Union Bank of India Rs4.59 billion, Allahabad Bank Rs3.31 billion, Bank of Maharashtra Rs490 million and Oriental Bank of Commerce Rs970 million, the agency said.

The CBI had filed the case against Vikram, his wife Sadhana and Rahul, and unidentified bank officials.

— PTI

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