CBI books Surat-based logistics firm, its directors for bank loan fraud

The CBI has booked Surat-based Siddhi Vinayak Logistic Ltd. and its directors for allegedly cheating State Bank of India to the tune of over Rs 214 crore by defaulting on payments of loan for new commercial vehicles, officials said on Monday. After registering the case, the CBI carried out searches at the residential and office premises of the directors in Surat and Mumbai, they said.

"It was further alleged that the accused had cheated the bank by not hypothecating the vehicles in favour of State Bank of India. It was also alleged that the loan proceeds were not utilised for the purpose for which the term loans were sanctioned," CBI spokesperson R C Joshi said.