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INVESTIGATIONS AND PROCEEDINGS
On, February 19, the Central Bureau of Investigation (CBI) lodged a case against Vikram kothari for drawing off ₹3695cr in bank loan funds.

The agency also conducted raids at both residential and office premises of the accused at Kanpur. The case has been registered on the basis of a complaint filed by the bank of Baroda. Along with unidentified bank officials, three directors have also been named in the complaint.

It is alleged that the company, in a criminal conspiracy cheated Bank of Baroda to the tune of ₹616.69 crores and other banks too.

“The total outstanding amount of seven banks i.e. Union Bank of India, Indian Overseas bank, Bank Of Baroda, Bank Of India, Allahabad Banks, Bank Of Maharashtra and Oriental bank of commerce  — has come to ₹3,695 crore (approx), including interest, by siphoning off bank loans disbursed to the said company,” the CBI said in a statement.

The Enforcement Directorate has also registered a money laundering case against Kothari and his family members in connection with the alleged fraud. Media reports also quoted Kothari as saying that talks are going on with banks to resolve the issue.

Loan exposure of the bank as follows:

Bank of India:  ₹456.63 crores

Union Bank of India: ₹458.95 crores

Allahabad Bank:  ₹330.68 crores

Bank of Baroda:  ₹456.63 crores

Bank Of Maharashtra: ₹ 49.82 crores

Oriental Bank of Commerce: ₹97.47 crores

Indian Overseas Bank: ₹771.07 crores

On 22 January, Vikram Kothari and his son Rahul Kothari were arrested by CBI  on charges of cheating. The arrest came after the Kotharis were questioned for four days following searches at their offices and residences.

On 24 January, The duo was produced before Additional Chief Metropolitan Magistrate Samar Vishal and the agency sought two-day transit remand from the court to take them to Lucknow. Court allowed them one day transit.