Police have arrested three Bank of Baroda officials in Jangareddygudem, Andhra Pradesh, over their alleged involvement in a gold loan fraud estimated at nearly ₹10 crore. A scrutiny of bank records, loan documents, locker registers, and staff statements uncovered widespread irregularities across 176 loan accounts. Investigators discovered that approximately 6.449 kg of genuine gold pledged by borrowers as collateral had been removed from bank lockers and replaced with imitation jewellery.
Bank Officials Held for Complicity and Negligence
The arrested personnel have been identified as former branch manager Kumarapu Bhaskara Rao, 35, joint manager Tanneru Ajay Babu, 40, and credit officer Jangala Sairaj, 33. Authorities accused the trio of complicity and procedural negligence regarding the custody and verification of the pledged gold. The formal case was registered on June 16, initiating a comprehensive probe into loan sanctions, pledged ornaments, and internal vault management.
Investigators detected noticeable discrepancies between the items described in the official loan paperwork and the actual ornaments stored inside the bank. This physical variation confirmed that pledged valuables had been methodically swapped for fake jewellery. Detectives are currently working to reconstruct the timeline of when the gold was taken and to establish whether the operation stemmed from organized collusion or an intentional bypass of standard verification protocols.
Earlier Arrest Led to Asset Recoveries
The arrests follow the earlier detention of gold appraiser Chalapaka Raju, 40, who was taken into custody on July 10. Following his interrogation, police seized assets valued at roughly ₹5.81 crore from him and from various locations where the ornaments had allegedly been sold or pledged. The recovered property comprised 4.120 kg of gold jewellery along with ₹10 lakh in cash.
The findings from the appraiser’s arrest prompted investigators to widen their scrutiny to the internal operations of the branch. Detectives reviewed bank transactions, locker operations, and employee statements, which ultimately pointed to the alleged involvement of the three branch officials.
Investigation Underway to Trace Remaining Valuables
Police teams are pursuing leads to track down the remaining missing gold and uncover the paper trail linked to the transactions. Inquiries are focused on identifying the buyers of the stolen gold and determining how the proceeds from the sales or secondary pledges were distributed.
The three accused bank officials are being produced before a local court as legal proceedings advance. Police stated that the investigation remains active and warned that additional suspects could be arrested if further evidence surfaces during the inquiry.
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