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    Love happens while writing… Rotomac pen used to be in every pocket, the story of 37000000000 scam was written with the same pen

    Shehnaz AliBy Updated:No Comments5 Mins Read
    New Delhi: The baraatis will be welcomed with Pan Parag… you will need to remember this punch line. These advertisements on TV took Pan Parag Pan Masala to every household. There is hardly any person who does not know about this company, but today we will not talk about Paan Parag, but about Rotomac, a company that makes pens and stationery items related to it. Vikram Kothari, son of Mansukhbhai Kothari, the owner of Pan Parag Company, started the Rotomac company, but the period of debt took him to such an extent that within a few years the company reached the floor. The pen which was present in every pocket in the 90s, used to promote it in TV commercials by stars like Salman Khan, Raveena Tandon, Vikram Kothari wrote the story of Rs 37000000000 scam with the same pen. Today we will tell you the story of this Rotomac scam.

    This is how Rotomac started

    Before knowing the story of the beginning of Rotomac, you must know the story of the beginning of Paan Parag. That’s because this pan masala company helped lay the foundation for Rotomac. Born in Gujarat on July 25, 1925, Mansukhbhai Kothari reached Kanpur from Gujarat at the age of 16, so that he could do some work there. He started selling pan masala on a bicycle. It went on like this for years. Munsukh Kothari’s fortunes changed when he got the distribution of Parle products in Kanpur. After this he never looked back. A few years later, he laid the foundation of Parag Pan Masala. In 1983 Kothari Products Private Limited was formed. Mansukh Lal’s two sons Vikram Kothari and Deepak Kothari were helping their father in expanding the pan masala business. During that period, the advertisement of actor Shami Kapoor ‘Baratiyon ka swagat paan parag se kariyega’ went on the air of the people. After expanding the business of betel pollen, Mansukhbhai started expanding the business. He ventured into other sectors as well. In the year 1992, the foundation of the Rotomac company was laid. Mineral water brand Yes was launched. Apart from this, the company expanded in the rear state, oil industry, school and education sector. In the year 1999, there was a situation of partition between the two brothers.

    Loan became a mess, this is how the scam started

    Loan became a mess, this is how the scam started

    The story of Rotomac’s downfall began with a loan. Vikram Kothari, the promoter of the company, was accused of fraudulently taking the loan and not repaying the loan. Vikram Kothari took loan from seven banks but failed to repay it. First in the year 2008, Kothari took Rs 200 crore. In the year 2010, he took a loan of 520 crores. Even after this this cycle continued. In the year 2011, a new loan of 585 crores has been taken. Along with this, Vikram Kothari took a loan of Rs 585 crore in the year 2012 and Rs 585 crore in the year 2013. The surprising thing is that the method of taking the loan was also strange. Sometimes Rotomac took loan in the name of buying wheat and sometimes in the name of fulfilling export orders. By taking loan, he kept investing the money elsewhere.

    Open pole in CBI investigation

    Open pole in CBI investigation

    Vikram Kothari had taken a loan of 2919 crores from 7 different nationalized banks including Oriental Bank of Commerce, Punjab National Bank. Including interest, this amount has reached close to 37 thousand crores. Vikram Kothari got Rs 456.63 crore from Bank of Baroda, Rs 754 crore from Bank of India, Rs 771.07 crore from Indian Overseas Bank, Rs 458.95 crore from United Bank of India, Rs 330.68 crore from Allahabad Bank, Rs 49.47 crore from Bank of Maharashtra and Oriental Bank of Commerce. A loan of Rs 97.47 crore was taken from Commerce. The businesses in which Vikram Kothari invested money came to a standstill. Companies went bankrupt. The CBI first arrested Vikram in February 2018 amidst reports of going abroad. He had to spend in jail for almost two years. He was later granted bail on the grounds of health. Vikram Kothari passed away in the year 2022. The existence of the Rotomac company, buried under the burden of debt, came to an end in the year 2020. The company auctioned off the Rotomac brand name for 3.5 crores. 12 companies bought this brand name and the same companies are doing business with this name.

    Rotomac in Vikram’s share after partition

    Rotomac in Vikram's share after partition

    In the year 1999, the business was divided between the two brothers. Vikram Kothari acquired Rotomac Company, the stationery business. Whereas younger brother Deepak Kothari went ahead with the business of Pan Masala. Vikram Kothari started working towards expanding the business. The Rotomac company dominated the market for nearly two decades. In the year 1997, Vikram Kothari was awarded as Best Investors. In the year 2005, his company joined the club of 100 crores. In those days, stars like Salman Khan, Raveena Tandon used to advertise Rotomac. Advertisements like ‘Likhte likhte love ho jaaye’ hit the hearts of people. Every pocket had a Rotomac pen.

    Source: navbharattimes.indiatimes.com

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    Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.

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