Loan from a nationalised bank

My friend has availed a cash credit from a nationalised bank , under start up india scheme. She availed loan to start manufactoring of garments. It has been six month now and availed funds for the purpose of business but not for the same purpose mentioned at time of availing loan. But due to market trends she transacted in cash. She has not been sble to pay emi since 4 months but recently paid one month emi out of four months. Now due to cash crunch she had to shut down office and shift into another premisis. She initially was unaware that she has to inform the bank that she shifted.But after bank manager informed she informed in writting. The bank manager knew the funds were used for other purpose other than manufactoring. But has suggested her to submit stock statements every month as it was bank guidelience and he had given unsecured loan against stock. But since her business is in loss , he has issued 32(2) notice.and has informed to take legal action and launch FIR for forgery as stocks not availabe but stock statement were not submitted. The applicant has intentions to repay loan and has processed liquidation of Bonds and life insurance policies. But it takes 15 working days.Also asked for help from friends but needs 15 working days. But Banker has been mentally torchering and defameing image in family and work place and stocking . We just need legal opnion and want best way out to buy time to close the loan without any futher damage.