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Business News/ Industry / Banking/  Rotomac bank fraud: Bank of Baroda has exposure of Rs456.6 crore
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Rotomac bank fraud: Bank of Baroda has exposure of Rs456.6 crore

Bank of Baroda says the account of Rotomac Global was declared an NPA on 3 October 2015 and it has made 100 provisioning for the loan

Bank of Baroda said that it has taken necessary ‘recovery measures’ against Rotomac Global and filed proceedings in the Debt Recovery Tribunal in October 2016. Photo: ReutersPremium
Bank of Baroda said that it has taken necessary ‘recovery measures’ against Rotomac Global and filed proceedings in the Debt Recovery Tribunal in October 2016. Photo: Reuters

Mumbai: State-owned Bank of Baroda (BoB) on Tuesday said it has an exposure of Rs456.6 crore in the Rotomac Global, currently being investigated by Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) in connection with an alleged bank fraud of Rs3,695 crore.

The bank, in a filing to stock exchanges, said the account of Rotomac Global was declared a non-performing asset (NPA) or bad loan by it on 3 October 2015 and it has made 100 provisioning for the loan. “The Bank has exposure of Rs456.6 crore on M/s Rotomac Global Pvt. Ltd under consortium arrangement with six other banks. The account was declared NPA by the bank on 3 October 2015 and has been 100% provided for," the filing said.

BoB was asked by stock exchanges for clarification regarding news reports related to Rotomac. After the CBI and ED, the income tax department has stepped up action against Kanpur-based Rotomac group and its promoter, attaching 11 bank accounts in connection with an alleged tax evasion probe against them, people familiar with the matter said.

The accounts in various bank branches in Uttar Pradesh were attached last night. The bank further said that it has taken necessary “recovery measures" and filed proceedings in the Debt Recovery Tribunal in October 2016 and a decree in favour of the bank was granted in January 2017.

It has also initiated action against Rotomac Global under SARFAESI Act, the filing said. After the enactment of Insolvency and Bankruptcy Code, the bank initiated corporate insolvency resolution process at NCLT Allahabad in June 2017 and the process is under way.

After the company and its directors were declared wilful defaulters, the bank had reported the fraud to the Reserve Bank and a complaint lodged with the CBI, ED and Directorate of Revenue Intelligence, the filing said.

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Published: 20 Feb 2018, 08:27 PM IST
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