Vikram Kothari of Rotomac Pens, is now accused of defaulting on repayment of more than Rs 800 crore loans from five government banks. Amid reports of Vikram Kothari fleeing India, the Kanpur-based company’s owner denied these reports saying he was very much in Kanpur. Further , according to latest media reports coming in, Kothari had been detained by the CBI in the regard.
Vikram Kothari is the brother of Deepak Kothari, owner of the famous mouth-freshener brand – Pan Parag. In the 1980s, Vikram started his stationery business under the brand name Rotomac.
When the family business was divided in the early 90s, Vikram got Rotomac, while his brother was given Pan Parag.
In a statement, Kothari said, “First of all, don’t call it a scam. Also, I am not leaving the country and I am very much in Kanpur. Banks have declared my company nonperforming asset (NPA), but not defaulter. The matter is still sub judice with National Company Law Tribunal (NCLT). I have taken loans and will repay it all soon.” The businessman has been untraceable since last week. He was seen at a wedding function in Kanpur yesterday.
Vikram Kothari, who is the chairman and MD at Rotomac Global Private Limited, had taken a loan of more than Rs 800 crore from over five state-owned banks. According to a PTI report, Allahabad Bank, Bank of India, Bank of Baroda, Indian Overseas Bank and Union Bank of India compromised their rules to sanction loans to Rotomac.
Kothari took a loan of Rs 485 crore from Mumbai-based Union Bank of India and a loan of Rs 352 crore from Kolkata-based Allahabad Bank. However, he has reportedly not paid back either the interest or the loan. Last year, Bank of Baroda (BoB), a consortium partner declared pen manufacturer Rotomac Global Pvt Ltd as “wilful defaulter”.
Rajesh Gupta, Recovery Agent of Allahabad Bank, told ANI that the loan amount is being recovered from the attached properties of Kothari. “Allahabad Bank has given loan (to Vikram Kothari) and recovery process is going on. Since properties are attached with loan, so we are hopeful that maximum loan will be recovered at the earliest.”