Nirav Modi's escape overseas, within two years of Vijay Mallya similarly hoodwinking the law after allegedly defaulting on banks loans worth hundreds of crores, seems to have let panic loose on the banking sector, and investigators believe the complaint by Bank of Baroda (BoB) against Vikram Kothari of Rotomac could be a result of this panic.
Kothari addressed some reporters after CBI's raids and said he would not run away from the country.
The CBI is conducting searching at his house and office premises in Uttar Pradesh but no arrests have been made so far.
When asked about the loan amount, Gupta said, "The loan is of Rs. 352 crore, which will be recovered through attached properties".
A CBI spokesperson said the agency is questioning Kothari, his wife and son.
Benchmark indexes Sensex and the Nifty fell about 0.7 percent on Monday after the Rs 11,400 crore banking fraud unearthed at Punjab National Bank last week raised worries over the systemic and others risk management systems prevailing within the banking ecosystem.
The Bank of Baroda in its complaint has alleged that the conspirators cheated a consortium of bank loans which tuned of Rs 3,695 crore. Media reports from Kanpur quoted Kothari as saying that talks with banks have been going on to resolve the loan issue. The investigative agency had on Monday filed a case against Rotomac Global Pvt Ltd, its Directors - Vikram Kothari, Sadhana Kothari, Rahul Kothari - and unknown bank officials on a complaint from Bank of Baroda. With the seizure of Rs 22 crore worth jewellery, the total value of gems and jewellery seized has gone up to Rs 5,671 crore. Kothari's company Rotomac was declared a "wilful defaulter" in an order dated February 27, 2017 according to the procedure laid down by India's central bank, the Reserve Bank of India.
This is the second major financial scam to break out after the sensational Rs 11,400 crore fraud allegedly committed by billionaire jewellery designer Nirav Modi and his uncle Mehul Choksi, who is a promoter of Gitanjali group of companies. No export orders were, however, executed. Besides BoB and BoI, the consortium includes Indian Overseas Bank, United Bank of India, Allahabad Bank, Bank of Maharashtra and Oriental Bank of Commerce.