The Division Number 1 police have registered an FIR against a city-based garment trader for allegedly cheating the State Bank of India (SBI) of over ₹1.5 crore by disposing of hypothecated stock and shutting down his business without clearing outstanding dues.ASI Somnath, who is investigating the case, said that the accused has been booked under Sections 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code and a probe was on. (HT File)The accused, Vinay Jindal, a resident of Pakhowal Road and proprietor of VK Creations has been booked after an FIR was registered against him on the complaint of Satyapriya Manjul, chief manager of SBI’s SME Focal Point branch.According to the complaint, VK Creations, engaged in the manufacture and trade of ready-made garments, had availed credit facilities from SBI against hypothecation of stock, receivables and other current assets.The account later turned into a non-performing asset (NPA) and was subsequently classified as a fraud account, which was also reported to the Reserve Bank of India (RBI), the bank said.SBI alleged that after availing the loan, the borrower stopped submitting stock statements after May 31, 2023, and later disposed of the hypothecated stock without the bank’s consent. Subsequent attempts by bank officials to contact him reportedly failed as his phone remained switched off or unreachable.During inspections conducted in August and September 2023, the bank found that VK Creations had shut down operations and another business was functioning from the same premises. The hypothecated stock, machinery and raw material were allegedly missing, the complaint stated.The bank further said that notices sent to the accused at his residential address on Pakhowal Road could not be served as he was no longer residing there, and the business premises had been vacated and rented out.As of January 10, 2024, the outstanding liability in the loan accounts stood at ₹1,51,53,260.54, including interest.ASI Somnath, who is investigating the case, said that the accused has been booked under Sections 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code and a probe was on.