3695 करोड़ का Scam🔥🔥 Rotomac Scam Explained, India's Biggest Scam in India, Rajnikant Sharma

Summary

The video dives into the shocking story of Vikram Kothari, the mastermind behind the Rotomac scam. Kothari, initially a successful businessman, orchestrated a massive financial fraud involving the diversion of bank loans for personal gain. By using shell companies and fraudulent transactions, he was able to acquire over 2,900 crores from multiple banks. The video unravels the intricate web of deception and the eventual legal consequences Kothari faced, including arrest and death after years of legal battles. It highlights the risks of corporate malfeasance and the complexities of financial fraud in India.

Takeaways

• 😀 Roto-Mac was initially a small pen company, which grew rapidly in the 1990s thanks to heavy marketing campaigns.
• 😀 Vikram Kothari, the son of the founder, expanded Roto-Mac's business and began taking loans from multiple banks.
• 😀 By 2013, Vikram Kothari had borrowed nearly ₹3,000 crore from seven different banks, supposedly for business purposes.
• 😀 The loans were misused for personal expenses rather than the intended business purposes, such as importing goods.
• 😀 Kothari used shell companies to funnel money back to himself, making it appear as though legitimate transactions were taking place.
• 😀 The banks trusted Kothari due to his strong business reputation, and didn’t realize they were being scammed until it was too late.
• 😀 The loans were secured with overvalued collateral, which turned out to be insufficient when the banks tried to recover the money.
• 😀 A major investigation by the CBI revealed that Kothari had defrauded the banks of around ₹3,000 crore, leading to his arrest.
• 😀 Kothari was declared a 'willful defaulter,' meaning he had the ability to pay but chose not to, causing significant financial loss.
• 😀 Despite attempts to recover the loans by auctioning Kothari's properties, the banks couldn’t recoup enough money due to inflated asset values.
• 😀 Kothari was arrested in 2018, spent 19 months in jail, and later passed away in 2022, marking the end of the Roto-Mac scam.

Q & A

What led to the investigation of the Roto brand and its founder, Vikram Kothari?

The investigation began when the Bank of Baroda suspected that Vikram Kothari was misusing the loans taken for business purposes and instead using them for personal gain. The suspicion arose due to inconsistencies in the company's financial transactions, leading to the CBI getting involved.

How did Vikram Kothari manage to secure such large loans from multiple banks?

Vikram Kothari was able to secure large loans by leveraging his existing businesses, particularly Roto, and his family’s established reputation with Pan Parag. He used these as collateral, and his company was well-known, which made banks confident in lending him money.

What was the role of the 'shell companies' in the Roto scam?

Shell companies played a critical role in the scam. Vikram Kothari created fake transactions by involving companies like Baghdiya Brothers. These companies would receive the loan funds under the guise of purchasing goods, but the money would be returned to Kothari, allowing him to use it for personal purposes.

How did the loan disbursement process work in the scam?

Kothari would convince the banks that he needed the loans to purchase goods from foreign companies. The banks would then disburse the funds to these foreign entities. However, instead of the goods being purchased, the funds would be returned to Kothari through intermediaries, thus misusing the loans.

What was the purpose of the large-scale advertisement campaigns for Pan Parag?

The advertisement campaigns were designed to increase the brand's visibility and market share, making it a well-known and trusted brand. This strategy also helped solidify the reputation of Kothari’s companies, which ultimately helped him secure loans from multiple banks.

What specific banks were involved in the loan scandal, and how much money did they lend?

A total of seven banks were involved in the scandal, lending a total of approximately ₹2,919 crore. These banks included Bank of Baroda, Bank of India, Indian Overseas Bank, Union Bank of India, Allahabad Bank, Bank of Maharashtra, and Oriental Bank of Commerce.

What eventually happened to Vikram Kothari and his businesses?

Vikram Kothari was arrested by the CBI in 2018 after being declared a willful defaulter. His businesses faced severe setbacks, and after his arrest, he was held in jail for 19 months. In 2022, Kothari passed away after an accident in his bathroom.

What does the term 'willful defaulter' mean in this context?

'Willful defaulter' refers to individuals or companies who have the means to repay their loans but choose not to. In Kothari’s case, the banks believed that he had the financial capacity to repay but deliberately chose not to.

How did the use of 'mismatch in property valuations' affect the loan process?

Kothari manipulated property valuations to secure larger loans than the actual value of his assets. For example, properties worth ₹20 lakh were presented as being worth crores, leading to the sanctioning of disproportionately large loans.

What was the role of corruption within the banking system in enabling the Roto scam?

Corruption played a significant role, with Vikram Kothari bribing certain bank employees to approve loans and overlook discrepancies in the loan documents and transactions. This helped him obtain loans despite the apparent risks and irregularities.