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Chennai: Police have arrested eight people in connection with an alleged fake gold loan fraud in which counterfeit ornaments were passed off as genuine to obtain loans from a public sector bank. Investigators said the accused allegedly caused a financial loss of ₹63.39 lakh to the bank.
Among those arrested are five bank-approved gold appraisers who are accused of falsely certifying fake jewellery as genuine gold. Police said efforts are continuing to trace the remaining accused linked to the alleged fraud.
Counterfeit Jewellery Used For Loans
The case came to light after a complaint was filed with the Bank Fraud Investigation Wing. According to the complaint, several borrowers allegedly conspired with empanelled gold appraisers to pledge counterfeit ornaments as genuine gold.
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Based on the allegedly inflated and false valuations, 22 gold loans were sanctioned. The borrowers later defaulted on repayment, causing losses to the bank.
Five Gold Appraisers Arrested
The probe first led to the arrest of three accused on June 29. They were identified as Bhoominathan, his wife Reegambigai and Nagalakshmi, all residents of Anna Nagar East in Chennai.
Further questioning and examination of records allegedly revealed the involvement of five authorised gold appraisers. Investigators claim the appraisers certified counterfeit ornaments as genuine, enabling the loans to be approved.
Bank Records And Valuation Reports Under Scanner
All eight accused were produced before a court and remanded to judicial custody. Investigators are now examining gold loan documents, valuation reports, bank records and financial transactions to identify the full network involved.
Police are also checking whether similar fraudulent loans were obtained through other bank branches. Further action will depend on the evidence collected during the investigation.
