Chennai: Chennai’s Central Crime Branch has arrested a gold appraiser and an accomplice for their roles in a ₹2.38 crore loan scam involving counterfeit jewelry at Canara Bank’s Mint branch. The case was exposed during an internal audit, revealing a sophisticated racket involving forged gold appraisals and collusion with a now absconding branch manager.
Internal Audit Unmasks Fake Jewelry Pledge Scheme
The fraud came to light in April during routine checks, when auditors uncovered suspicious irregularities in gold loan documentation. Investigations revealed that the branch manager, Ramesh Mallukunda, currently evading arrest, colluded with appraiser Saravanan (42), issuing certificates for 21 pieces of fake jewelry and arranging for ‘customers’ to pledge the fake jewellery and issue gold loans against them. Another accomplice, Janakiraman (39), assisted by physically pledging the fraudulent items.
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Appraiser and Pledger Now in Custody as Investigation Widens
Following the audit, authorities launched a probe; both Saravanan and Janakiraman were arrested and presented in court, where they were remanded to judicial custody. The search for the missing manager continues. The bank’s fraud investigation unit is now tracing the fake gold’s origin and cross-referencing records to identify other potentially complicit employees. This arrest serves as a reminder that the gold loan sector, often trusted by middle-class families for urgent needs, can also be exploited by those within the system. Experts stress that banks and lending institutions must strengthen background checks, adopt advanced verification technologies, and conduct surprise audits to curb such fraudulent practices. The public is also advised to be cautious and verify the credibility of agents or appraisers before engaging in any transaction. As the probe deepens, more names may surface, potentially uncovering a wider network behind the ₹2.38 crore swindle.