ED facilitates release of assets to victims in Rotomac Global case

The Enforcement Directorate has facilitated the release of properties, currently worth about ₹380 crore, attached in the Rotomac Global Private Limited case, so assets could be restored to victims, secured creditors, and other legitimate claimants.

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

The attached assets were originally mortgaged to a consortium of public sector banks, which had relinquished their security interest in favour of the liquidator of Rotomac Global Private Limited. “Thereafter, the liquidator submitted an application before the Special Court seeking release of the attached assets, considering a decline in asset value, financial burdens on secured creditors, and to maximise the recovery amount of assets,” the agency said.

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