Kanpur-based Kothari allegedly owes almost Rs 3,700 crore to seven public sector banks including Bank of Baroda, Bank of Maharashtra, Union Bank of India, Allahabad Bank, Bank of India, Oriental bank of Commerce and Indian Overseas Bank.
Kothari's wife, Sadhana, is also an accused in the FIR that was registered on February 18 following a complaint by the Bank of Baroda. The Rotomac group is involved in an alleged Rs3,695 crore loan default to a consortium of state-backed lenders.
The CBI had started investigating after a complaint registered by the Bank of Baroda.
It is alleged that Kothari got loans disbursed on the basis of foreign letters of credit (FLCs) on the pretext of making payments to his buyers and suppliers in places like Dubai, Sharjah and Hong Kong but they didn't exist.
It may be noted here that mobile phones of all members of the Kothari family and even that of his staff and domestic helps have been confiscated.
Sources said Kothari constantly maintained that he had not committed fraud and would have returned theRotomac loan in due course.
However, no arrests have been made in the case so far, CBI spokesperson Abhishek Dayal said Kothari, his wife and son were being examined by the CBI. Bollywood hearthrobs Salman Khan and Raveena Tandon were then its brand ambassadors. Last year, BoB declared Rotomac Global Pvt Ltd as "wilful defaulter" and the firm had moved the Allahabad HC seeking removal of its name from the list.
The father-son duo is accused of scamming a consortium of public sector banks of Rs. 3695 crore. Besides conducting raids at his facilities across UP, the ED had informed all the authorities concerned to make sure he didn't flee from the country like billionaire Nirav Modi would defrauded the PNB of around Rs 11,400 crore.