MUMBAI, 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 Act. The construction firm had approached SBI for funding to complete a residential project in Borivali West. The bank subsequently sanctioned loans worth Rs.7.8 crore. The loan account, which remained operational between December 2018 and February 2023, was classified as a non-performing asset (NPA) in February 2023. With outstanding dues of Rs.6.88 crore, the account was later reported as a fraud to the RBI in April 2025. During verification, the bank allegedly found that the firm had mortgaged a flat to the lender after already executing a sale agreement. The bank also alleged that part of the loan amount was diverted towards payment of the income-tax liabilities of one of the partners, while another portion was routed to related entities....