Unsecured loan

Yes, incase fraudulently took the unsecured loan. It means whatever documents you submitted are fake / fabricated, than Bank can file FiR. If your documents are good / genuine then they do Cheque Bounce case under Negotiable Instruments Act These matters can be settled in Lok Adalat also. Under OTS (One Time Settlement).

Banks are not private lenders,they sanction loans for a specific purpose of acquiring assets.  As per agreement with the bank, the borrower has to use the amount for which the amount was advanced, diversification of such borrowed funds amounts to cheating and criminal breach of trust.  In case of subsidy loans, Central Government directed banks to file a complaint to police and use the Revenue recovery Act for recovery.  You can see these complaints every day and even big wigs are not spared.  If the amount is large CBI may enter into picture.

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