Kothari, Chairman & MD of popular Rotomac pens, took a loan of Rs 4.85 billion from Mumbai-based Union Bank of India and a loan of Rs 3.52 billion from Kolkata-based Allahabad Bank. There are reports that bank rules were compromised to give loans to Kothari.
Last year, Bank of Baroda, a consortium of partner declared pen manufacturer Rotomac Global Pvt Ltd as "wilful defaulter," PTI reported.
Rotomac was declared a wilful defaulter vide an order dated February 27, 2017, passed by an authorised committee, according to the procedure laid down by the Reserve Bank of India.
Kothari's office in Kanpur's City Centre has been locked since past few weeks, Times Now reported.
Clarifying the issue, Kothari stated, "Banks have declared my company nonperforming asset (NPA), but not a defaulter. The matter is still sub judice with National Company Law Tribunal (NCLT). I have taken loans and will repay it all soon," according to Times of India report.