Ludhiana: Garment trader booked for cheating SBI of over ₹1.5 crore

Ludhiana Garment Trader Charged with Fraudulent Practices Against SBI

Ludhiana - The Ludhiana police have initiated a formal investigation into the alleged financial misconduct of Vinay Jindal, a local garment trader. He is accused of defrauding the State Bank of India (SBI) of over ₹1.5 crore by selling assets that were pledged as collateral and abruptly closing his business without settling outstanding debts.

FIR Filed Based on SBI Complaint

The FIR was registered following a complaint from Satyapriya Manjul, the chief manager of SBI’s SME Focal Point branch. Manjul alleged that Jindal, who runs VK Creations, had secured loans by hypothecating stock, receivables, and other current assets. The case now marks the beginning of legal proceedings against him.

Loan Default and Fraud Classification

VK Creations, involved in ready-made garment manufacturing and trading, had access to credit facilities from SBI. However, the account transitioned into a non-performing asset (NPA) and was eventually categorized as a fraud. The bank also informed the Reserve Bank of India (RBI) about the situation.

Disappearance of Assets and Communication Breakdown

After receiving the loan, Jindal reportedly ceased providing stock statements after May 31, 2023. He then sold the hypothecated inventory without the bank’s approval. Bank officials faced challenges in contacting him, as his phone remained unresponsive or unreachable.

Inspections Reveal Business Shutdown

During inspections in August and September 2023, SBI discovered that VK Creations had halted operations. A different enterprise was reportedly using the same premises. The hypothecated goods, machinery, and raw materials were missing, according to the complaint.

Unsuccessful Notice Delivery

Attempts to serve legal notices to Jindal at his Pakhowal Road residence failed, as he was no longer there. The business premises had been vacated and leased to another party, leaving the bank with no immediate contact or evidence of his whereabouts.

“The accused has been charged under Sections 406 and 420 of the Indian Penal Code for criminal breach of trust and cheating. A thorough probe is ongoing,” stated ASI Somnath, who is handling the investigation.

Outstanding Debt Amounts

As of January 10, 2024, the total unpaid amount in Jindal’s loan accounts reached ₹1,51,53,260.54, including accrued interest. The SBI claims this sum was siphoned through fraudulent disposal of collateral and operational shutdown.