Rotomac Global, the famous pen manufacturing company that was under the CBI and ED scanner in 2018 for defrauding about 7 banks of Rs 3,695 crore, is again booked for defrauding Indian Overseas Bank of Rs 750 crore. Here’s all you need to know about the scam.
If you are millenial or a 90s kid, you must have used or mabe seen your parents or siblings use a Rotomac ball pen. If not, you must have at least seen those ads of Salman Khan or Raveena Tandon endorsing Rotomac pens.
The brand that would endorse Indians to ”likho India ki nayi pehchan”, has managed to mark itself on the books, but for frauds.
First some context: In 1999, a certain Vikram Kothari became the Chief of Rotomac Pens. Over time, Vikram diversified the Rotomac business into Rotomac Global and ventured into real estate, malls, mouth fresheners, and agro exports. His export business was said to export rice, wheat, maize, gold, etc.
Now the Rotomac scam: Rotomac took loans from multiple banks for their export business till 2012. The loans were taken to procure goods and export agro products. But no export orders were executed. Instead, the loan money was diverted into related offshore accounts, and then redirected to Rotomac without executing any export order. Vikram Kothari was also accused of round-tripping ie selling a company’s unused asset to another company and buying it back at the same price. In addition, Rotomac never repaid the…
