According to a report by news agency PTI, Kothari had taken a loan of more than Rs 800 crore from five state-owned banks.
The raided places included office and residential premises of the company's directors, where searches were conducted on Monday as well, the CBI said.
The Rotomac pen company owner had taken loans from the Indian Overseas Bank, Bank of Maharashtra, Bank of Baroda, Bank of India, Union Bank of India, Allahabad Bank and Oriental Bank of Commerce. I am not going anywhere.
The inquiry reveals Vikram Kothari used different methods to seek loan from these banks.More news: Russian Federation probe looking into Kushner's business contacts
The Kanpur banks have put Kothari's loan amount under non-performing asset (NPA). "I availed the loans and will repay them soon", he said.
Union Bank of India in an exchange filing said it had sanctioned some loan to Rotomac in 2012 under a consortium lending with Bank of India (BOI) was the lead bank. A year later, Kothari has reportedly not paid back either the interest or the loan. "The Bank has exposure of Rs456.6 crore on M/s Rotomac Global Pvt". In its complaint, BoB stated, "Since this account is of high value in this fraud case, we apprehend that directors/guarantors of the company may try to escape from the country to skip from legal/criminal proceedings".
The value of government's holdings in PSU banks has fallen 10% to Rs 2.6 lakh crore from 2.9 lakh crore. He also defended himself by explaining that he has not indulged in any fraud and that he already has litigation pending against some banks in the National Company Law Tribunal (NCLT), which is why he should not be termed as a wilful defaulter. The development comes less than a week after Punjab National Bank (PNB) had detected a Dollars 1.77 billion - about Rs 11,400 crore - scam wherein Modi allegedly acquired fraudulent letters of undertaking (LoUs) from a branch in Mumbai to secure overseas credit from other Indian lenders.
In PNB alone, where the government has a stake of more than 57%, the value of its holdings fell 28% (or Rs 6,247 crore) to Rs 16,117 crore in the last seven days. "...(The) bank chose to visit offices of the company's suppliers and buyers". For example, Rs 15.50 crore in packing credit disbursed to Rotomac's current account for executing an export order of $4.2 million was remitted to the company's other accounts through RTGS, reports ET.