A special CBI court has rejected the regular bail applications of Gaurav Mahajan and Keshav Mahajan, residents of Gurdaspur, in connection with a fraud case linked to Sahowalia Rice Mills Pvt Ltd, accused of defrauding the Bank of India of nearly Rs 37.95 crore. According to the CBI investigation, between 2011 and 2013 the company repeatedly enhanced its working capital limit — from Rs 6 crore to Rs 10 crore, then to Rs 20 crore, and eventually to Rs 37 crore. Although properties and guarantees were mortgaged, the payments were not made on time, and by 2014 the account was declared a non-performing asset (NPA). While the bank managed to recover some funds through the sale of mortgaged assets, more than Rs 75 crore is still outstanding. The case was registered by the CBI in 2022 following a complaint from bank officials. Investigators found that the loans were obtained using “false documents and misrepresentation”. As per court records, the accused repeatedly evaded summons and warrants and only surrendered when proclamation proceedings were initiated. The prosecution argued that their conduct remained “non-cooperative”. Rejecting the bail plea, the court noted that charges were yet to be framed and, given the circumstances, there was no ground for bail. The defence had contended that since the accused were not arrested during the investigation, they should be granted bail. However, the court cited a recent Supreme Court ruling, observing that “the grant of bail always depends on the specific facts, circumstances, and conduct of the accused”. Both Gaurav and Keshav Mahajan will remain in judicial custody, with the case scheduled for further hearing.
