SFIO Summons Rajesh Bothra: The Serious Fraud Investigation Office (SFIO) has summoned businessman Rajesh Bothra in connection with a ₹7,840 crore financial fraud involving public sector banks and corporate entities. Bothra, along with his associates, is accused of fraudulent banking transactions, round-tripping of funds, and falsification of financial documents, leading to massive financial losses for Indian banks.
Corporate Manipulation and Round-Tripping of Funds
According to SFIO’s investigation, Bothra controlled multiple offshore entities, including:
RBA Ventures Ltd.
Gulf Distribution Limited
Fareast Distribution and Logistics Pte Ltd.
Kobian Trading Ltd.
These companies were allegedly used to rotate funds multiple times, creating an illusion of legitimate trade transactions while siphoning off public money.
Further findings indicate that Bothra collaborated with Vikram and Rahul Kothari to falsely infuse share capital, manipulate Debt-Equity Ratios (DER), and mislead public sector banks into granting large-scale credit based on fabricated financial strength.
₹7,840 Crore Loss to Indian Banks
The fraudulent scheme caused massive financial damage, with total estimated losses exceeding ₹7,840 crore.
Letters of Credit (LCs) and bank loans were secured using fake financial transactions and later defaulted, exposing serious lapses in banking oversight.
Illegal Speculative Trading
SFIO’s probe further revealed that Bothra and his associates engaged in speculative currency trading using funds fraudulently obtained from banks.
This trading led to heavy losses, and ₹1,246 crore was transferred to foreign shell companies through debit notes to cover up the fraud.
Forgery and Misreporting of Financial Statements
SFIO found that Bothra and his company directors manipulated financial statements, inflating:
Revenues
Trade receivables
Profits
These false financial reports misled auditors, investors, and regulators, allowing Bothra’s firms to secure additional bank loans and credit facilities, further worsening financial losses.
Legal Action: Summoning Under Companies Act, 2013
Following an extensive investigation, Rajesh Bothra has been summoned under Section 447 of the Companies Act, 2013, which deals with corporate fraud.
Judicial proceedings have commenced, and legal authorities are now reviewing the evidence against Bothra and his business associates.
SFIO Calls for Stronger Banking Regulations
SFIO officials emphasized that this case highlights systemic weaknesses in India’s banking sector.
The agency has called for stricter regulations and enhanced financial oversight to prevent future large-scale financial frauds.
Conclusion
The Rajesh Bothra financial fraud case is one of the largest banking scams in India, involving fake transactions, round-tripping, and financial misreporting. With SFIO’s investigation exposing severe financial crimes, legal action has intensified, and the case is expected to set a precedent for corporate fraud regulations in India.
