SBI Loan Fraud: Two Ahmedabad Firms Face ₹4.95 Crore Case

AHMEDABAD  : A ₹4.95 crore alleged bank fraud involving two pesticide manufacturing companies has landed before the CID Crime Branch after their owners allegedly stopped repaying crores of rupees borrowed from the State Bank of India (SBI).

The cases relate to two units operating from Sahitya Industrial Estate at Gatrad village in Daskroi taluka. The loans were sanctioned by SBI’s small industries branch for pesticide manufacturing, but both businesses allegedly stopped paying instalments from 2022.

The CID Crime Branch registered separate cases following a complaint by SBI officer Purushottam Sharma and has launched an investigation into the alleged defaults and handling of the loan-funded assets.

In the first case, Tribhuvandas Shrimali, owner of Hyta Crop Care Industries, had obtained a ₹1.25 crore term loan and ₹65 lakh cash-credit facility in 2020 for manufacturing pesticides.

According to the complaint, the company stopped making repayments in 2022. During a subsequent inspection, bank officials reportedly found the unit closed. The owner allegedly claimed that machinery at the premises had been stolen. Investigators, however, found the claim to be unsubstantiated, according to the complaint.

The bank subsequently auctioned the mortgaged property. Despite the recovery process, dues including interest and other outstanding limits reportedly reached ₹2.14 crore, prompting the criminal complaint.

The second case concerns Pankaj Prajapati, owner of Hyta Bio Science Industry, located in the same industrial estate. Prajapati had secured a ₹1.95 crore term loan and ₹80 lakh cash-credit facility in 2020 for pesticide production.

His unit also allegedly ceased operations in 2022, after which loan instalments were not paid. The outstanding amount, including interest and other dues, has reportedly risen to ₹2.81 crore.

“The complaints have been registered on the basis of the bank’s application, and further investigation is underway,” officials said.

The combined outstanding amount in the two cases stands at approximately ₹4.95 crore. Investigators are examining the loan transactions, utilisation of funds, pledged machinery and mortgaged properties to determine the full extent of the alleged financial irregularities.

The cases highlight the risks faced by banks when industrial loans obtained for business expansion allegedly turn into prolonged defaults, particularly when units are subsequently shut down and secured assets become difficult to recover.