A complaint of fraud was registered in 1995 against the officials of State Bank Saurashtra in Bhavnagar and three associates of the Gosalia Group. The Central Bureau of Investigation (CBI) court sentenced the three Gosalia brothers to one to five years and fined ₹15 lakhs.

In 1995, the CBI registered a case against the then-chief manager of the State Bank of Saurashtra in Bhavnagar and the partners of Gosalia International in Bhavnagar. It was alleged that the bank official had increased the cash credit limit of the company up to ₹2 cr. 

The increment of cash credit without any verification was only allowed up to ₹30 lakh, however, the credit increased by ₹60 lakh at that time. 

The cash credit was further increased to ₹2.5 cr, too.

The CBI court sentenced Vipul Gosalia, Anil Gosalia, and Dilip Gosalia of the Gosalia Group in the case, sentencing them to a jail term of one to five years and a fine of ₹15 lakh.

Notably, charges against bank officers were dropped when their terms expired.

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