Diversion of fund with in business for business

A borrower. Obtained loan under multiple banking from three banks. Term loan from 2 banks and working capital from one bank. Unit is a loss making unit for last many years. Unit sold out the stock and purchased machinery for improvement of quality of product. Secondly made the payment of installments of other bank rest born loss. Company did not pay the sale proceeds to the bank who had provided the working capital. Bank lodged a complaint of cheating. Whether this is a act of cheating. Although money diverted to another bank and for purchase of fixed assets but promoters did not take it out of the business or for personal use.