Ahmedabad: The CID Crime Branch of Gujarat Police on Tuesday launched an investigation into an alleged loan fraud following a complaint by the branch manager of the State Bank of India’s GIDC Electronics Estate branch in Gandhinagar.

According to the FIR, two partners of a food processing firm allegedly diverted machinery and assets mortgaged against multiple loans, defaulting on repayments and causing a loss of over ₹4.42 crore to the bank. The firm had availed a cash credit limit of ₹2 crore and a term loan of ₹80 lakh in October 2020, backed by warehouse properties worth ₹1.15 crore and covered under the CGTMSE scheme.

Following the death of one partner, the loans were restructured in September 2021. However, by December 2022, the accounts turned non-performing as the borrowers stopped repayments. During a subsequent inspection, bank officials reportedly found the factory premises locked and the machinery missing. DeshGujarat