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 linked to machinery purchases.
The complaint was submitted, by Konapuli Hareesh, Chief Manager of SBI’s Small and Medium Enterprises (SME) branch at Yellareddyguda, Hyderabad.
According to the complaint, Bioeq Care, Managing Director Rohini Shiva Chandra Sekhar and Director R. Mounika, had approached the bank in August 2023 seeking financial assistance for its pharmaceutical manufacturing operations.
Loans sanctioned for API manufacturing unit
The company applied for a cash credit limit of ₹1.5 crore and a term loan of ₹5.15 crore to set up machinery for manufacturing active pharmaceutical ingredients (API) and formulations.
Following inspections and verification of documents, the Regional Credit Committee of SBI’s Regional Business Office in Banjara Hills sanctioned the loans.
The company submitted land at Uskabavi hamlet in Ameenpur, Sangareddy district as collateral security. The property had been transferred through Gift Deed.
Bank officials had conducted pre-sanction and collateral inspections, and obtained legal opinions and valuation reports from empanelled advocates and valuers before approving the loan.
Scrap found in machinery packages
The total project cost was estimated at ₹8.83 crore, of which ₹7.35 crore was earmarked for machinery purchases. SBI disbursed ₹4,62,73,000 to vendors as part of the sanctioned term loan.
However, during a post-sanction 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.
Promoters later said that three machines had arrived at the factory in April 2025 but had not been installed as the remaining machines were yet to be delivered.
When the bank initiated a fresh valuation and inspection with a plant and machinery valuer on August 25, 2025, officials allegedly discovered irregularities.
According to the complaint, the machinery packages contained scrap material, including used cardboards, sofa cushions and bricks, instead of the expected equipment. In two packages, second-hand machinery was found in place of new autoclave machines.
The valuation report dated August 25, 2025 assessed the machinery present at the unit at ₹1,24,20,000, far below the ₹4,62,73,000 disbursed 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, operations never commenced.
Due to non-installation of machinery and default in repayment, the loan account was classified as a non-performing asset (NPA) on May 2, 2025.
The bank served 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 failed to respond.
Despite partial repayments of ₹1,40,26,839 towards the term loan, the bank alleged that the company had fraudulently diverted loan funds.
The complaint accuses Rohini Shiva Chandra Sekhar, R. Mounika and guarantors Anugula Bhupal Reddy and Anugula Mahipal Reddy of conspiring to cheat the bank.
SBI has requested police to take legal action against the accused for allegedly defrauding the bank.
