Ludhiana, June 14 -- 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 Rs.1.5 crore by disposing of hypothecated stock and shutting down his business without clearing outstanding dues.

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 tur...