Police in Chennur, Mancherial district, have opened an investigation into a major bank fraud valued at nearly INR 13.70 crore, following an internal audit that flagged serious irregularities at the SBI-2 branch in Chennur. A case has been registered against nine people, including the branch cashier, on allegations that pledged gold ornaments and cash were siphoned using fraudulent methods, according to police sources and bank officials.
The suspected diversion came to light during an internal audit on Friday, Aug 22, prompting bank officials to file a complaint. On Saturday, Aug 23, Chennur police began a formal probe and named multiple suspects tied to the branch’s handling of pledged assets and vault cash. Investigators said the cashier and other accused are at large, and teams are working to trace them.
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Internal Audit Flags Irregularities
Auditors reported mismatches between recorded balances and physical holdings in both cash and pledged gold. Preliminary findings indicate a sustained pattern rather than a one-off discrepancy, officials said. Police have sought CCTV footage, vault access logs, pledge registers, and transaction trails, and are examining whether authentication steps were bypassed or falsified to move collateral out of custody.
The alleged manipulation of pledged gold—assets held against loans—has raised concerns for borrowers who rely on those items as security. Senior officers said they are mapping the route of each suspect transaction to determine how the assets were withdrawn and whether external handlers were involved.
Bank Response and Depositor Assurances
Bank officials have assured depositors of a discreet inquiry and said customer balances remain protected. The branch is conducting a full reconciliation of pledged items and cash tills, while regional oversight teams review dual-custody practices, surprise-audit frequency, and maker-checker controls.
The probe is expected to look at role segregation, user privilege trails, and alarm thresholds that should trigger alerts when high-value pledges are released or inventories fall below tolerance bands. Investigators are also examining whether any KYC or loan-processing gaps were exploited to mask the movement of collateral.
Police said additional sections could be added as the scope of the alleged fraud becomes clearer. The value under scrutiny—nearly INR 13.70 crore—marks one of the largest bank-linked scams reported in Mancherial district in recent years.
