A major gold loan fraud involving a private bank has come to light in Bengaluru, Karnataka, where police have detained three persons, including a bank appraiser, for allegedly cheating the bank of nearly ₹1.5 crore. The accused allegedly obtained gold loans by pledging imitation jewellery as genuine gold through fake bank accounts. Preliminary investigations indicate that around 15 bogus accounts were used to fraudulently secure loans worth over ₹1.5 crore.
According to the police, the prime accused orchestrated the fraud with the help of an associate and the bank’s appraiser. The gang allegedly lured people into opening bank accounts by offering them money and assuring them that their jewellery would simply be pledged to obtain loans without causing them any inconvenience.
Investigators found that the bank appraiser, whose responsibility was to examine and certify the authenticity of pledged gold, allegedly misused his position by falsely certifying fake jewellery as genuine. Based on his valuation reports, the bank sanctioned gold loans, allowing the accused to withdraw the funds and disappear. Police believe the appraiser played a crucial role in the scam, as the loans could not have been approved without his certification.
Preliminary findings suggest that the accused created nearly 15 fake accounts and fraudulently obtained gold loans amounting to approximately ₹1.5 crore. Police also suspect that the appraiser received around ₹2.5 lakh as commission for every ₹10 lakh loan sanctioned. Investigators are now examining whether any other bank employees or external individuals were involved in the conspiracy.
The fraud was reportedly detected during the bank’s routine internal audit. The audit uncovered irregularities in the pledged jewellery and the corresponding loan accounts, prompting the bank to alert the police and initiate a detailed investigation.
During the course of the investigation, the prime accused allegedly targeted a businessman, Jagadisha S., through a mutual acquaintance. He falsely claimed that gold pledged with the bank was due to be auctioned and offered to arrange its purchase at ₹9,000 per gram, assuring the businessman that it could later be sold for ₹13,000 per gram for a substantial profit.
Believing the offer, the businessman allegedly paid ₹1.53 crore to the accused. Police said the accused deposited the money into the bank in an apparent attempt to avoid legal consequences before absconding. When the promised gold was never delivered and the accused became unreachable, the businessman filed a complaint with the Peenya Police on July 28.
Based on the complaint, police registered a case and arrested the prime accused and his associate from their hideout in Karwar, Karnataka. During interrogation, information provided by the accused led investigators to detain the bank appraiser for questioning. Police are now trying to determine the exact number of fake accounts used, the total financial loss caused by the fraud, and whether additional individuals were part of the network.
Investigators believe the accused exploited weaknesses in the bank’s internal control and valuation processes to execute the fraud. Police are examining bank records, loan approval documents, account transactions, and the financial activities of the accused to uncover the full extent of the racket. Officials said further arrests and additional charges could follow once the investigation is completed.
