The Central Bureau of Investigation detained Vikram Kothari, the owner of Rotomac Pen, in a Rs 800-crore loan default case. Kothari was detained from Kanpur, where the CBI carried out raids this morning.

Kothari's detention came hours after reports of him having fled the country. Kothari, however, denied those reports, saying, "I am a resident of Kanpur and I will stay in the city."

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 CBI today filed an FIR against Kothari in the loan default case.

Earlier, PTI, quoting unnamed sources, reported that Allahabad Bank, Bank of India, Bank of Baroda, Indian Overseas Bank and Union Bank of India compromised their rules to sanction loans to Rotomac.

Kothari took a loan of Rs 485 crore from Mumbai-based Union Bank of India and a loan of Rs 352 crore from Kolkata-based Allahabad Bank, the PTI report said, adding that Kothari had reportedly not paid back either the interest or the loan a full year after being lent the money.

It was not immediately clear how the other three banks named in the PTI report were involved in the Rotomac affair. However, the CBI's action today was based on a complaint filed by Bank of Baroda.

#UPDATE: Latest visuals from from Rotomac Pens owner #VikramKothari residence as CBI raid is underway. pic.twitter.com/6R0NBW6cKO

- ANI UP (@ANINewsUP) February 19, 2018

The Rotomac affair comes close on the heels of a massive fraud allegedly committed by billionaire diamond trader Nirav Modi.

Nirav Modi and his associates, including uncle and fellow jeweller Mehul Choksi, are alleged to have carried out fraudulent transactions to the tune of Rs 11,300 crore at a Punjab National Bank branch in Mumbai.

The CBI is investigating the PNB fraud case. Nirav Modi has already left the country, with reports suggesting that he is currently staying at a posh hotel in New York, US.

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