Following this modus operandi, they were able to show a healthy balance sheet. The SFIO
probe found that Rotomac manipulated books in the form of trade receivables to the tune of Rs 3,000 crore, while the total amount for Frost International was around Rs 3,500 crore.
Rotomac Group of Companies
and Frost International have total outstanding liability of Rs 4,000 crore and Rs 3,500 crore towards 14 public sector banks against which they have defaulted.
The provision to arrest for SFIO
— which deals with white collar crimes and fraud under companies
law, was notified only two years ago.
In May 2018, the Central Bureau of Investigation (CBI) filed its charge sheet against Rotomac Global and its promoters, in connection with the Rs 4.56 billion alleged loan default involving Bank of Baroda (BoB). The investigative agency also booked Frost International for an alleged bank fraud, to the tune of over Rs 3,592 crore.
CBI had alleged that Frost International and its directors submitted forged documents, and diverted and siphoned off the bank’s funds.
Enforcement Directorate (ED) too had registered a separate case against Rotomac under the Prevention of Money Laundering Act.