A major alleged fraud involving gold loans has come to light at the Kakadeo branch of Muthoot Fincorp Limited in Kanpur, Uttar Pradesh. The company has filed a fraud case against 18 people, including the branch manager, alleging that gold loans worth around ₹1.99 crore were approved against fake and extremely low-purity gold jewellery, causing a significant financial loss to the company.
Senior Regional Manager of the company Amit Kumar Singh filed the complaint in the matter. Based on the complaint, Kakadeo Police registered a case against former branch manager Pradeep Shukla, gold valuer Nikhil Kumar Bajpai and 16 others under relevant sections related to fraud and other offences. Police have started an investigation into the matter.
According to the company’s preliminary investigation, several gold loans were approved at the Kakadeo branch between April and June 2026, where serious irregularities were found regarding the quality and purity of the pledged jewellery. The company alleges that fake or low-quality gold ornaments were presented as genuine high-purity gold in alleged coordination with certain customers, following which loans were sanctioned.
During an internal review, the company conducted a re-evaluation of the pledged jewellery and found that the purity of most of the ornaments was only between 8% and 15%. Despite this, 30 gold loans were approved against these items. According to the company, the alleged irregularities resulted in a financial loss of around ₹1.99 crore.
The investigation has also raised allegations against branch manager Pradeep Shukla and gold valuer Nikhil Kumar Bajpai. The company claims that the accused allegedly ignored the actual quality of the jewellery and carried out incorrect valuation before approving the loans. Investigators are also examining the suspected involvement of several customers in the alleged fraud.
After the matter came to light, the company contacted the concerned customers and asked them to return the loan amount and take back the pledged gold. However, the company alleges that several customers and individuals linked to the case failed to repay the money. Following this, the company decided to initiate legal action.
After receiving the complaint, Kakadeo Police registered an FIR and started an investigation. Police are now trying to determine the exact number of people involved in the alleged fraud and whether similar gold loans were approved earlier using the same method.
Investigators are examining branch records, gold valuation reports, loan approval documents and related financial transactions. Police are also looking into whether the accused operated through an organised network to cause financial losses to the company or whether the matter was limited to a few individuals.
Officials said further legal action will be taken based on the findings of the investigation. Authorities are examining the role of each accused, financial transactions linked to the case and the possibility of involvement in other similar fraud cases.
