The tardy pace of probe by the central agencies such as CBI, ED, SFIO and IT is a drag on the Rs 4,500-crore Rotomac Bank fraud case against the pen makers. Will it be buried in the pages of history like other bank frauds without recovering NPA amount? A report by Mudit Mathur
Rotomac Bank fraud amounting to Rs 4,500 crore is all set to be diluted due to undue delay by the investigation led by multiple agencies of the government including Central Bureau of Investigation (CBI), Enforcement Directorate (ED), Serious Fraud Investigation Office (SFIO) and Income Tax (IT). Will it be buried in the pages of history like other bank frauds without recovering NPA amount?
The investigations into murky corporate fraud of Rotomac group once again came into the focus this month after the Supreme Court confirmed its orders of anticipatory bail to the former Directors of Mohan Steel Limited in a case linked to alleged company fraud of Rs 4,500 crore caused to a consortium of 14 banks, in which the Promoters and Directors of the Rotomac Group of Companies and Frost International Limited are also facing trial.
This was the second major financial scam that broke out after the sensational Rs 11,400 crore fraud allegedly committed by billionaire jewellery designer Nirav Modi and his uncle Mehul Choksi, as a promoter of Gitanjali group of companies. Both left the country defrauding the Punjab National Bank before its officials could realise the seriousness of the scam….
