India, May 30 -- A city-based construction firm allegedly used a flat already sold to a buyer as collateral for a bank loan and later diverted part of the borrowed funds to clear a partner's income-tax dues leading to an alleged Rs.6.88-crore loss to the State Bank of India (SBI). The CBI has now booked the firm's two partners.

The case was registered by the CBI's Mumbai unit on May 15 against partners and personal guarantors B Shah and M Makwana, along with unidentified public servants and others, based on a complaint lodged by SBI's regional manager.

The accused have been booked under provisions related to criminal conspiracy, cheating, criminal misappropriation and criminal misconduct under the IPC and the Prevention of Corruption Ac...