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HYDERABAD Hyderabad: State Bank of India (SBI) has filed a complaint alleging that a pharmaceutical company and its directors defrauded the bank of ₹4.29 crore through a fraudulent loan scheme to purchasing machinery.

This complaint was made by Konapuli Harish, Chief Manager of Small and Medium Enterprises (SME) branch of SBI in Yellareddyguda, Hyderabad.

According to the complaint, Bioic Care, Managing Director Rohini Shiv Chandra Shekhar and Director R. Mounika had approached the bank in August 2023 seeking financial help for her pharmaceutical manufacturing operation.

Loan approved for API manufacturing unit

The company had applied for a cash credit limit of ₹1.5 crore and a term loan of ₹5.15 crore for setting up machinery to produce active pharmaceutical ingredients (APIs) and formulations.

After inspection and verification of documents, the loan is approved by the Regional Credit Committee of the Regional Business Office of SBI in Banjara Hills.

The company had deposited land in Uskabavi village at Aminpur in Sangareddy district as collateral security. The property was transferred through a gift deed.

Bank officials conducted pre-sanction and collateral inspections before sanctioning the loan, and obtained legal opinion and valuation reports from empaneled lawyers and valuers.

Scrap found in machinery package

The total cost of the project was estimated at ₹8.83 crore, of which ₹7.35 crore was earmarked for purchasing machinery. SBI gave ₹4,62,73,000 to vendors as part of the term loans sanctioned.

However, during a post-approval inspection in October 2024, the company informed the bank that one of the key machines, a lyophilizer (freeze dryer), had been returned to the vendor due to specification issues.

The promoters later said that three machines had arrived at the factory in April 2025, but had not been installed as the remaining machines had not yet been delivered.

When the bank initiated a fresh valuation and inspection with a plant and machinery valuer on August 25, 2025, officials reportedly found irregularities.

According to the complaint, the machinery package contained scrap material, including used cardboard, sofa cushions and bricks, instead of the equipment as expected. In two packages, new autoclave machines were replaced with second-hand machinery.

The valuation report dated August 25, 2025, valued the machinery in the unit at ₹1,24,20,000, which is much lower than the ₹4,62,73,000 given by the bank.

Loan account classified as NPA

The company had proposed to begin commercial operations by November 30, 2023, with loan repayments expected from April 2024. However, the operation never started. Due to non-installation of machinery and default in payments, the loan account was declared non-performing asset (NPA) on May 2, 2025.

The bank sent demand notices under Section 13(2) of the SARFAESI Act on May 3, 2025 and later issued possession notices under Section 13(4) on August 12, 2025, after the promoters allegedly did not respond.

Despite some payments of ₹1,40,26,839 towards the term loan, the bank alleged that the company fraudulently diverted the loan funds.

In the complaint, Rohini Shiv Chandra Shekhar, R. Mounika and guarantors Anugula Bhupal Reddy and Anugula Mahipal Reddy have been charged with conspiracy to defraud the bank.

SBI has requested the police to take legal action against the accused for allegedly defrauding the bank.