Hyderabad: The Central Crime Station (CCS) police of Hyderabad have registered a case against a car dealership and its directors for alleged loan default and diversion of hypothecated assets that caused State Bank of India (SBI) a loss of ₹3.2 crore.The complaint was lodged on Aug 12 by K Sanjay Kumar, branch manager of SBI’s City Centre branch in Banjara Hills. According to the complaint, Quality Plaza Auto Cars Private Limited with its office address in Habsiguda and its directors N Sai Tharun and N Bhaskar Rao had availed ₹4.2 crore credit facility from HDFC Bank, which SBI took over in Sept 2017 with an enhanced exposure of ₹1.7 crore.The complaint alleged that after multiple restructurings of the borrower’s accounts between 2018 and 2019, due to declining sales, the borrower failed to adhere to sanctioned terms. “Bank inspections conducted in early 2020 found the company’s Nizamabad showroom shut, with hypothecated stock, plant and machinery worth ₹4.9 crore missing. Those assets were disposed of without the bank’s permission and the proceeds were never credited to the loan account,” the complainant alleged before the police.The account was declared a non-performing asset (NPA) in Feb 2020 and the bank formally classified it as fraud in Feb 2021. “The accused has caused ₹3.2 crore wrongful loss to the bank. They not only cheated the bank but also misappropriated the public funds for personal gain,” the complainant alleged.Based on the complaint, CCS police registered a case under Sections 418 (Cheating with knowledge that wrongful loss may ensue to person whose interest offender is bound to protect) and 424 (Dishonest or fraudulent removal or concealment of property) read with Section 34 (common intention) of the Indian Penal Code (IPC). “The delay in lodging a complaint is due to bank making efforts to restructure the loan account and recover the dues. We are collecting details from the bank as part of the preliminary probe,” said a CCS official.
