The Rotomac Scam
How a Trusted Pen Brand Was Linked to a ₹3,695 Crore Bank Fraud
For decades, Rotomac was a household name in India. Its pens were advertised by Bollywood stars like Salman Khan and Raveena Tandon, with the tagline "Likho India ki nayi pehchan." But in 2018, the company's name became associated with one of India's largest banking frauds, following the Punjab National Bank (PNB) scam involving Nirav Modi. The Rotomac case exposed how a legitimate manufacturing business allegedly became a vehicle for large-scale loan default and fund diversion.
Who Is Behind Rotomac ?
Vikram Kothari became the head of Rotomac Pens in 1999, and over time diversified the business into Rotomac Global, expanding into real estate, malls, mouth fresheners, and agro exports, including rice, wheat, maize, and gold. The company, along with Kothari and his family members, operated as Rotomac Global Private Limited.
How the Scam Came to Light
The Rotomac case surfaced just days after the much larger Punjab National Bank fraud, raising fears that Kothari might also try to flee the country. This came as a second major blow to India's banking sector in quick succession.
In February 2018, an FIR was filed with the CBI by Bank of Baroda against Rotomac Global after director Vikram Kothari was found guilty of wilfully defaulting on a massive loan amount. CBI teams raided several locations in Kanpur connected to Kothari, his wife, and his son, sealing residential and office premises, including one in New Delhi.
The Scale of the Fraud
A consortium of seven banks — Bank of Baroda, Bank of India, Bank of Maharashtra, Indian Overseas Bank, Union Bank of India, Allahabad Bank, and Oriental Bank of Commerce — had reportedly been cheated out of loans totaling roughly ₹2,919 crore, which swelled to about ₹3,695 crore once interest was included. These loans had reportedly been extended to the company since 2008.
How the Money Was Allegedly Diverted
According to reports, loan money meant for export orders was instead diverted into related offshore accounts and redirected back to Rotomac without any actual export orders being executed. Kothari was also accused of "round-tripping" — selling a company's unused asset to another company and buying it back at the same price.
Investigators alleged that Kothari obtained foreign letters of credit to facilitate payments to buyers and suppliers abroad as part of Rotomac's international trade dealings, and that forged documents were submitted to banks, with letters of credit issued in favor of entities including Fareast Distributors & Logistic Pvt Ltd and RBA Venture Ltd. Banks alleged that incomplete documents or photocopies of shipping bills were provided, with the family claiming original papers had been sent to the importer.
Arrests and Legal Action
On February 22, 2018, the CBI arrested Vikram Kothari and his son Rahul, both company directors, for defaulting on loan repayments worth ₹3,695 crore, after officials said the two were not cooperating with the investigation. Before the arrest, CBI and Enforcement Directorate (ED) officials had questioned all three company directors — Vikram, his wife Sadhana, and son Rahul — over multiple days, while the income tax department attached 11 bank accounts linked to the family.
The Enforcement Directorate also registered a separate money laundering case against Kothari and his family under the Prevention of Money Laundering Act, to examine whether the origins of bank funds had been disguised by routing them through offshore accounts.
Kothari and his son were eventually released on bail by the High Court after spending about nine months in jail.
Later Developments
Rotomac was again booked later for allegedly defrauding Indian Overseas Bank of an additional ₹750 crore. However, the case saw little further progress in the years that followed — Vikram Kothari died at his Kanpur residence in January (reportedly after a fall in his bathroom), leaving the trial unfinished and investigations incomplete. CBI and ED investigations into related bank fraud cases have continued since.
Why the Case Matters
The Rotomac case, emerging so soon after the PNB-Nirav Modi scandal, became a symbol of vulnerabilities in India's public banking system — particularly around loan syndication, letters of credit, and oversight of long-standing corporate borrowers. It also underscored how a well-known consumer brand's public image can be entirely disconnected from the financial conduct happening behind the scenes.
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*This article is based on publicly reported information from news sources. Details of ongoing legal proceedings may have evolved since publication.*