Even the general masses have not got over with the extreme kindness of Nirav Modi which cost them a sum of 11400 crores, one more angel called Vikram Kothari hit them hard by showering his kindness 3695 crores! Such has been the deplorable state of the banking sector of our country which is going through the roughest phase since its incorporation. A fortnight has hardly passed and the market doomed once again as Rotomac Pen Promoter Mr. Kothari has been alleged to swindle such a whopping amount from a different bank at the same time. The Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) were compelled to be busier as they have to register separately cases against Mr. Kothari who was already busy with Mr. Nirav Modi.
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Each and every bank involved in the Rotomac’s case have a great sum of money according to the CBI which sums to 2919 crores without interest and 3695 crores along with interest, bank charges, and liabilities.
The banks involved are:
- Bank of Baroda (456.53 Crores)
- Bank of India (754.77 Crores)
- Bank of Maharashtra (49.82 Crores)
- Allahabad Bank (330.68 Crores)
- Oriental Bank of Commerce (97.47 Crores)
- Indian Overseas Bank (771.07 Crores)
- Union Bank of India (458.95 Crores)
Such a drastic hit have shown an immediate downfall in the shares of all the seven banks in which the Union Bank of India is the worst sufferer with a dip of 8.50%. Undoubtedly CBI has raided on the various offices and residences of Kothari. Mr. Kothari has been booked under various sections of Indian Penal Code (IPC) and Prevention of Corruption Act.
At the time when such scams are becoming a biting reality, The Policy Times suggest some policy changes which could save it from further disaster:-
- Proper collateral for even the big giants
- Proper documentation for the loan processing
- Proper appointment of banking officials
- Vigilant approach towards banks