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Fraud by borrower in case of Guarantee


13-Jul-2025 (In Criminal Law)
I have signed a guarantee for personal loan for a childhood friend in a private chit fund company as he claimed that he too was a govt servant. However later I got to know that the friend has been impersonating govt official and he has absconded the state. All the documents he submitted for loan are fake and other guarantees are fake except me. Now the chit fund company is after me. Kindly advise how to get out of the guarantee bond.
Answers (5)

Answer #1
570 votes
we need to check all the documents which you have signed with the bank and the nature of security you have deposited with a bank . are there any criminal cases already filed against your friend in case he is absconding we also need to check what are the assets he has in his name. but in case you are facing any harassment from the bank then we need to handle this in a different way you may have to file a suit for interim relief.
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Advocate Kishen Samuel

Adv. Kishen Samuel

LawRato Secunderabad | 25+ Answers
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Answer #2
544 votes
Immediately file a police complaint against your friend for his cheating and impersonation . Inform the chit fund company in writing that your consent was obtained by fraud making the guarantee is legally void . Consider filing a civil suit to declare the Guarantee Bond null and void. it will protect you legally and stop the chit fund from enforcing the bond against you.
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Advocate Pavani Kumari

Adv. Pavani Kumari

LawRatoGuntur | 400+ Answers
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Answer #3
663 votes
This type of cases very common now a days, you can drag the matter for some period so that he get caught and pay , otherwise you can’t escape from paying or settling the issue. Contact an advocate so he can give you proper details based on the amount and emi amount.
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Advocate D. Jagadheeswara Rao

Adv. D. Jagadheeswara Rao

LawRatoHyderabad | 25+ Answers
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Answer #4
919 votes
hi first need to see whether any notice issued by the chit fund company for the recovery of the amount then you could give reply notice to them denying the allegations and need to see any notice for attachment of salary is issued
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Advocate Baddam Aravind Reddy

Adv. Baddam Aravind Reddy

LawRatoSecunderabad | 1000+ Answers
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Answer #5
999 votes
Since you were misled and signed the guarantee based on fraud, file a police complaint against your friend for impersonation and cheating under IPC sections. Also, inform the chit fund company in writing about the fraud and seek legal relief. You may approach a civil court to challenge the guarantee bond on grounds of misrepresentation. Legal assistance is strongly recommended to draft the complaint and notice properly.
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Advocate Mrudhula Jahnavi

Adv. Mrudhula Jahnavi

LawRatoSerilingampally | 200+ Answers
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