ED facilitates release of assets to victims in Rotomac Global case

The Enforcement Directorate facilitated the release of properties currently worth around Rs 380 crore in the Rotomac Global Private Limited case, so that the assets could be returned to the victims, secured creditors and other legitimate beneficiaries.

The ED probe is based on the First Information Report registered by the Central Bureau of Investigation, which alleged that the company had cheated the Bank of Baroda to the tune of ₹456.38 crore. The agency had attached several properties, including factory buildings, industrial plots and land parcels, located in Kanpur and Ahmedabad on May 28, 2018. Prosecution complaints were also filed.

The foreclosed assets were initially mortgaged to a consortium of public sector banks, which waived their security interest in favor of the liquidator of Rotomac Global Private Limited. “The liquidator then filed an application with the Special Court requesting the release of the seized assets, taking into account the decline in asset value, the financial burden on the secured creditors and maximizing the amount of recovery of the assets,” the agency said. he said.

ED did not object, following which the court ordered the release of the properties in favor of the liquidator.