Authority: High Court of Judicature at Bombay, Criminal Appellate Jurisdiction
Order Date: 16 October 2026
Case Overview
- Applicant: Ishwar Das Arora, former Branch Manager (2005‑2009) of Indian Overseas Bank, Mumbai‑II.
- Respondents: Union of India (represented by CBI) and the State.
- The revision challenges the judgment and order dated 17 January 2026 of the Special Court of CBI, Greater Mumbai, which rejected the applicant’s discharge application (Exh. 46).
- Allegations: According to a complaint filed by the DGM/Chief Regional Manager of Indian Overseas Bank, the applicant colluded with the director of Sun Optical Mastering Private Limited (SOMPL) to supply forged foreign bills amounting to Rs 38.17 crore. Offences cited under IPC §§120‑B, 406, 420, 467, 468, 471 and PC Act §§13(2) & 13(1)(d).
- The Special Court observed that during the applicant’s tenure, term loans of Rs 27.20 crore were disbursed without complying with sanction conditions, credit reports, quotations, or construction of factory, and that the company infused only Rs 7.13 crore against a required Rs 16 crore infusion. The court deemed these facts prima facie indicative of complicity.
- The applicant argued lack of prima facie evidence, that the loan was sanctioned after his tenure, no financial loss to the bank, and absence of illegal gratification or sanction. He also cited exoneration in a departmental enquiry.
Final Outcome
- The High Court, relying on settled jurisprudence regarding discharge applications, held that the material on record establishes a prima facie case and therefore dismissed the revision application.
- The order of the Special Court rejecting the discharge remains in force; the trial will proceed and be decided on its merits.
Topics: Court Proceedings, Banking Fraud