Jabalpur | A major gold loan fraud has surfaced at the Sadar branch of Punjab National Bank (PNB) in Madhya Pradesh’s Jabalpur, prompting police to register a criminal case against 15 individuals, including two empanelled gold valuers. The alleged scam came to light after the bank conducted a revaluation of pledged gold ornaments and discovered that several items submitted as collateral for loans were counterfeit.
According to officials, the fraud involved multiple borrowers who allegedly obtained gold loans by pledging fake jewellery while presenting it as genuine gold. The matter was detected during an internal verification and revaluation exercise undertaken by the bank after irregularities were noticed in certain loan accounts.
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Bank officials stated that the revaluation process covered a number of gold loan accounts and revealed serious discrepancies in at least 13 cases. The pledged ornaments in these accounts were reportedly found to be counterfeit, raising concerns about lapses in the verification process followed at the time the loans were sanctioned.
Preliminary findings suggest that loans amounting to approximately ₹38.81 lakh were disbursed against the suspected fake gold. With accumulated interest and related dues, the bank’s total exposure in the affected accounts has reportedly crossed ₹43.17 lakh. The discovery has triggered a broader investigation into how counterfeit jewellery passed through the bank’s assessment mechanisms without being detected.
Investigators are focusing particularly on the role of two empanelled gold valuers who were responsible for examining and certifying the pledged ornaments before the loans were approved. Police allege that the valuers certified the counterfeit jewellery as genuine gold, enabling borrowers to obtain loans from the bank.
The two valuers named in the FIR are Rajeev Soni and Ashutosh Saraf. Authorities suspect there may have been collusion between some borrowers and the valuers, though investigators have not yet reached any final conclusion. Officials said all aspects of the transaction process are being examined to determine whether the fraud resulted from negligence, deliberate misrepresentation, or a coordinated conspiracy.
Based on the complaint lodged by the bank, Cantt Police registered an FIR against 15 accused under various provisions of the Bharatiya Nyaya Sanhita (BNS). The accused include borrowers as well as individuals linked to the valuation and approval process. Investigators have seized relevant documents, loan records, valuation reports, and account-related materials to reconstruct the sequence of events that led to the alleged fraud.
Police teams have begun efforts to locate and question the accused persons. Authorities are also reviewing the complete loan sanction process, including documentation, verification procedures, and the safeguards that were expected to prevent such incidents. The investigation aims to identify whether similar irregularities may have occurred in additional accounts.
The case has renewed attention on risk management practices within gold-backed lending operations. Gold loans have become an increasingly popular source of credit due to their quick approval process and relatively simple documentation requirements. However, experts note that the system depends heavily on accurate valuation and authentication of pledged ornaments, making the role of approved valuers critical to preventing fraud.
Banking observers say the incident highlights the importance of stronger verification standards, periodic audits, and advanced testing methods for pledged gold assets. Financial institutions across the country have been strengthening compliance systems in recent years to reduce exposure to fraud and operational risks.
Meanwhile, police officials have confirmed that the investigation remains active and that additional developments may emerge as evidence is analyzed. Authorities are examining financial links among the accused and determining whether the alleged fraud was an isolated incident or part of a larger organized scheme. Further legal action is expected as investigators continue to gather evidence and establish individual responsibilities in the case.
