Ibrahiim.
I think that there is some question here as to what the original hilt represents.
Clearly, (as I suggested in my original post) the koftgari was applied to the steel after it's modification to this shape.
I also still think that the decoration on both blade and hilt seem contemporary.
Was it original to this blade? (in as much as has it ever had a different hilt?)
I think possibly yes, quite possibly they have always been together.
I think that either way, the hilt in this configuration was IMHO completely deliberate. Strange yes, but carefully and skillfully made. Not by any means a quick fix or botched job.
As I originally said, I think it might have been to achieve a more 'Chilanum-esq' look.
Short tangs are often (in my experience) on blades cemented into metal or stone hilts.
Who knows why the maker went to such effort to decorate a modified Katar grip and mount it sideways on this blade?
When Tim suggests that there is an interesting story. He's right, there is!
I assume that from your comments about the condition, the Katar hilt was already cracked where the tang enters?
Presumably this suggests some force being used, so presumably the hilt was good and solid originally?
If it were mine, I would have liked to repair the original hilt and keep it.
That said! It's not mine, it's yours

And I think that once you've flipped the new hilt over, it'll look fine.
The horn looks like 'blonde buffalo'. I've not seen an indian hilt of this type made from it before, I'd usually associate it more with Kurdish/Ottoman daggers.
For me, strangely I think it looks like 'what it is': A Arab influenced hilt of Indo-Persian style.
I wouldn't associate the silver pinwork with Indian daggers, I would associate it with Islamic/Arab daggers.
So, I think you've taken an interesting item and turned it into...... another interesting item!
Have you flipped the hilt yet?
Best
Gene