In 2018, the company became the center of attention after being scrutinized for its role in defaulting large sums of money, resulting in non-performing advances causing the deterioration of the quality of assets in the Indian banking sector.
[1] The company was embroiled in controversies pertaining to the misappropriation of funds when settling payment obligations to buyers and sellers, while it was also allegedly called out for engaging in market manipulation tactics.
[3] In February 2018, an FIR was filed at Central Bureau of Investigation by Bank of Baroda against Rotomac Global after one of its directors, Vikram Kothari, was found guilty of willfully defaulting on a whopping amount of INR 3,695 crore.
[7] The senior CBI officials, who took firm control of the legal proceedings of the case, insisted that Rotomac Global and its promoter Vikram Kothari had violated the Foreign Exchange Management Act guidelines.
[10] The company was penalised by CBI under the Indian Penal Code sections including criminal conspiracy (120-B) and cheating offenses (420), in addition to the provisions under the Prevention of Corruption Act, 1988.