Court Takes Strict Action Against Guarantor in Multi-Crore Bank Fraud
A special CBI court has issued a fresh directive to the Collector of Dera Bassi in Mohali, demanding the recovery of Rs 70,000 from a guarantor who failed to produce an accused in a significant bank fraud case involving Rs 7.29 crore. The court has set a deadline of March 9, 2026, for the penalty recovery.
The reminder notice was issued by Additional District and Sessions Judge Bhawna Jain of the special CBI Court, specifically targeting guarantor Attar Singh. The court has authorized the concerned officials to recover the fine amount through the attachment and sale of his property, with the proceeds to be deposited in the court.
The Origins of the Bank Fraud Case
According to prosecution details, this complex financial fraud case traces back to 2015 when the Central Bureau of Investigation registered an FIR against eight individuals. The accused included four retired officials from Indian Overseas Bank, all allegedly involved in causing a substantial financial loss of approximately Rs 7.29 crore to the bank.
The case originated from a complaint filed by D C Kar, who served as the chief regional manager of Indian Overseas Bank. The official complaint was registered on October 7, 2015, marking the beginning of the legal proceedings.
The investigation revealed that Arvinder Singh Gorwara (now deceased) and Amarinder Singh Gorwara were directors of Arvind Machine Tools Private Limited, a Mohali-based company specializing in manufacturing auto components. The fraudulent activities came to light when, on January 15, 2014, Sahil Gorwara was appointed as director of the company following Arvinder's removal, without informing the bank as required.
Modus Operandi and Legal Proceedings
The prosecution alleged that the accused orchestrated a sophisticated money siphoning scheme through the company's limited account. Significant transactions were made via RTGS transfers to various bogus firms, effectively diverting funds through fraudulent channels.
According to the complaint, the accused parties utilized false and forged documents to facilitate the fraud, resulting in the massive financial loss to Indian Overseas Bank through their deliberate omissions and commissions.
In a significant development in November 2019, the Special CBI Court in Chandigarh granted anticipatory bail to two key accused: Sahil Gorwara and his mother Daljit Kaur Gorwara. During this bail proceeding, Attar Singh came forward as Daljit's surety, formally undertaking to pay Rs 1 lakh in case of her non-appearance in court.
The situation escalated in September 2023 when both mother and son failed to appear before the court for proceedings. This led to the court declaring them as proclaimed offenders in the case, triggering legal consequences for their guarantors.
Guarantor's Defense and Court's Response
While Balwinder Ram, the guarantor for accused Sahil, complied with the court's order and paid the imposed fine of Rs 70,000, Attar Singh presented a different response. He appealed for leniency, claiming that he had made genuine efforts to locate the accused but had been unsuccessful in his attempts.
Attar further stated that he lacked the financial means to pay the penalty amount of Rs 70,000, prompting the court to take the stringent measure of ordering property attachment. This decision underscores the legal system's firm stance on ensuring accountability in financial fraud cases, particularly when court directives are not followed.
The case continues to unfold as authorities work to recover the substantial financial loss while ensuring that all parties involved face appropriate legal consequences for their actions and obligations.
