NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Supreme Court Of India
    Central Bureau Of Investigation (CBI)
    Indian Army
    Indian Railways
    Indian Air Force
    NewsBytes
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout


    India Business World Politics Sports Technology Entertainment Auto Lifestyle Inspirational Career Bengaluru Delhi Mumbai Visual Stories Find Cricket Statistics Phones Reviews Fitness Bands Reviews Speakers Reviews

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
     
    Home / News / India News / ED attaches Rs. 177cr-worth assets in Rotomac bank fraud case
    India

    ED attaches Rs. 177cr-worth assets in Rotomac bank fraud case

    ED attaches Rs. 177cr-worth assets in Rotomac bank fraud case
    Written by Garima Bora
    May 29, 2018, 03:46 pm 2 min read
    ED attaches Rs. 177cr-worth assets in Rotomac bank fraud case

    The Enforcement Directorate today said it has attached assets worth Rs. 177 crore in connection with its probe against Kanpur-based Rotomac Group. ED said it has issued a provisional order yesterday under the Prevention of Money Laundering Act (PMLA) for attachment of properties "owned by M/s Rotomac Global Private Limited and its directors located at Kanpur, Dehradun, Ahmedabad, Gandhi Nagar, and Mumbai." Here's more.

    Discounted LC would either go to Rotomac or Kothari

    The ED probe revealed that Rotomac indulged in trading with a limited number of buyers and sellers and used to receive back the discounted LC (letters of credit) amount from the overseas beneficiary after deduction of 1.5-2% commission by them. This amount would either go directly into accounts of Rotomac Group companies or into the accounts of overseas companies controlled by owner Vikram Kothari.

    Accused defaulted in meeting their payments by siphoning off funds

    This discounted LC amount thereafter has been used by the firm for "other business activities" such as FDR, iron ore purchase, and investment in real estate. It said the overall modus operandi to perpetrate this alleged bank fraud was that the accused, in the guise of merchanting trade, defaulted in meeting their payments obligation to the bank by "diverting and siphoning off the funds."

    The Rotomac money laundering case

    The ED-CBI case has been registered against the firm director and owner Vikram Kothari, his wife Sadhna Kothari, son Rahul Kothari, and unidentified bank officials on a complaint from Bank of Baroda. The bank had alleged that the conspirators had cheated a consortium of banks to the tune of Rs. 3,695 crore, including the interest component. The principal amount involved is Rs. 2,919 crore.

    Second major bank fraud case after Nirav Modi

    This is the second major bank fraud to surface in the recent past after the sensational over $2 billion Punjab National Bank (PNB) fraud, allegedly committed by diamond merchant Nirav Modi and his uncle Mehul Choksi, the promoter of the Gitanjali Group of companies.

    Share this timeline
    Facebook
    Whatsapp
    Twitter
    Linkedin
    Latest
    Kanpur
    Enforcement Directorate (ED)
    Punjab National Bank
    Bank of Baroda

    Latest

    5 reasons to re-watch Katrina Kaif-Akshay Kumar's 'Namastey London' today Bollywood
    Chaitra Navratri 2023: Try these low-carb fasting recipes  Navratri
    Over 95,400 UPI-related frauds reported in 2022-23: Centre Unified Payment Interface (UPI)
    Alphonse Puthren announces his next project; details inside Tamil Cinema

    Kanpur

    Railway constable arrested for molesting Swiss woman onboard Tejas Express Uttar Pradesh
    UP: Fire kills mother-daughter duo during anti-encroachment demolition drive Uttar Pradesh
    Airtel launches 5G Plus in Agra, Meerut, Gorakhpur, Kanpur, Prayagraj Bharti Airtel
    Kanpur horror: Teacher drills student's hand for forgetting number table Uttar Pradesh

    Enforcement Directorate (ED)

    Delhi liquorgate: Manish Sisodia's judicial custody extended by 14 days Aam Aadmi Party (AAP)
    Delhi liquorgate: Manish Sisodia's ED custody extended by 5 days Manish Sisodia
    Opposition parties meet to strategize before Budget Session resumes today Mallikarjun Kharge
    RJD MP Manoj Jha attacks BJP after CBI summons Tejashwi Bihar

    Punjab National Bank

    RBI is looking into Indian banks' exposure to Adani Group Adani Group
    Nirav Modi's plea against extradition rejected by British court Nirav Modi
    Dominica withdraws illegal entry case against fugitive Mehul Choksi Nirav Modi
    Fugitive diamantaire Mehul Choksi says he may be kidnapped again Antigua

    Bank of Baroda

    Maharashtra farmer in trouble after finding Rs. 15L in account Narendra Modi
    Cashback worth Rs. 5,000 on BS6-compliant Honda SP 125 motorbike ICICI Bank
    Cashback worth Rs. 5,000 on Honda Hornet 2.0 this December India
    Vivo V20 'Moonlight Sonata' color variant launched in India Vivo Mobiles

    Love India News?

    Subscribe to stay updated.

    India Thumbnail
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2023