Rotomac pens promoter Vikram Kothari and his family members allegedly diverted loan amount towards other purposes than they were mean for, the CBI said. (file photo/ANI) Rotomac pens promoter Vikram Kothari and his family members allegedly diverted loan amount towards other purposes than they were mean for, the CBI said. (file photo/ANI)

Rotomac pens owner Vikram Kothari and his son Rahul were arrested by the CBI on Thursday in connection with the alleged loan default of Rs 3,695 crore to a consortium of seven nationalised banks.

On Wednesday, Kothari and his son were questioned by the CBI for the third consecutive day at the investigation agency’s headquarters in New Delhi.

Earlier, Kothari was questioned in Kanpur by CBI officials. His residence and office in Kanpur were among the multiple locations which were searched and seized by CBI sleuths last week.

The CBI alleged that Kothari, his wife Sadhana and son Rahul, all directors of Rotomac Global Pvt Ltd, had allegedly diverted the loan amount towards purposes other than what they were meant for.

The agency registered a case against the Kotharis based on a complaint by Bank of Baroda, one of the consortium banks, on February 18. The bank requested authorities to confiscate the passports of Kothari and his family members.

It is alleged that Kothari has been defaulting the loans for several years now.

The manufacturing unit of Rotomac pens in Kanpur was also shut down on December 8 owing to the bank liabilities. The services of the unit’s 450 employees, including 250 women, has been terminated.

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Business News, download Indian Express App.

© IE Online Media Services Pvt Ltd