The Central Bureau of Investigation (CBI) on Thursday arrested Rotomac Pens owners in connection with alleged bank loan fraud of Rs 3,695 crore.

The investigation agency arrested both are directors of Rotomac - Vikhram Kothari and his son Rahul Kothari.

The Kanpur-based group was being probed by the CBI and the Enforcement Directorate in connection with an alleged bank loan fraud of Rs 3,695 crore, given by a consortium of seven banks.

The CBI registered a case on February 18 after receiving the complaint. Initially, the alleged scam was estimated to be of Rs 800 crore but after the CBI started probe into the accounts of the Rotomac Global Private Limited,it was found that the company had allegedly taken loans from Bank of India, Bank of Maharashtra, Indian Overseas Bank, Union Bank of India, Allahabad ank and Oriental Bank of Commerce.

It was alleged in the complaint from the Bank of Baroda that conspirators cheated a consortium of bank loans to the tune of Rs 3,695 crore including the interest component.

The principal amount involved was Rs 2,919 crore. The ED subsequently registered a money laundering case against them.

Earlier this week, the Enforcement Directorate (ED) had notified all the land, sea and airports in the country to prevent the exit Kothari, and his family members from India.

The agency also conducted searches at multiple locations in Uttar Pradesh, including in Unnao and Kanpur, to gather evidence in the case.

Last week, Kothari rebuffed the reports of not repaying the bank loan.

He had said that he has not done anything wrong and would not run away from the country.

"Yes I took a loan from the bank, but it's wrong to say I am not paying it back. I live in Kanpur and will continue to live here, I am not running away anywhere, no country better than India," Kothari said.