Bhubaneswar. The Economic Offences Wing (EOW) of the Odisha Police has arrested the former branch manager of a public sector bank in connection with the alleged fraudulent sanctioning of gold loans worth ₹2.12 crore against fake gold ornaments and the suspected misappropriation of the loan proceeds. The accused has been identified as Satyabrata Bhoi, who was serving as the branch manager of the bank’s Joda branch. According to the EOW, Bhoi allegedly carried out the financial irregularities in connivance with other bank employees.
Officials said the case was registered following a complaint filed by Asutosh Susil Kumar Patnaik, the bank’s regional head in Baleshwar. The EOW subsequently examined bank records and gold loan accounts and allegedly detected several irregularities. Bhoi was arrested on Sunday and is scheduled to be produced before the designated court under the Odisha Protection of Interests of Depositors (in Financial Establishments) Act, 2011, in Baleshwar.
The investigation found that 100 gold loans were allegedly sanctioned and disbursed by the branch between June 2023 and June 2024. The total value of these loans was around ₹2.12 crore. The EOW has alleged that the gold ornaments pledged against the loans were fake or did not have the value claimed. Investigators also found that the required documentation and procedures were allegedly not properly followed while sanctioning and disbursing the loans.
According to the investigating agency, 23 of the 100 gold loan accounts have since been closed, while 76 accounts remain outstanding. As of August 18, 2026, the total outstanding amount in the 76 active accounts stood at approximately ₹1.97 crore. The figures indicate the scale of the potential financial exposure faced by the bank in the case.
The EOW has further alleged that the accused branch manager deliberately sanctioned loan amounts and credited them to the respective borrowers’ accounts without their knowledge or consent. The money was subsequently transferred to other bank accounts, investigators said.
According to officials, the loan proceeds were eventually diverted to accounts allegedly linked to Bhoi and his associates. Investigators suspect that the movement of funds through multiple accounts was intended to facilitate the alleged misappropriation of the loan proceeds and conceal the actual money trail.
The EOW is now examining the bank accounts through which the funds were transferred. Investigators are also trying to establish the role of other bank employees and determine whether additional individuals were involved in arranging the fake gold ornaments or facilitating the loan approvals.
The agency is also examining the accounts opened in the names of the borrowers. Their knowledge of the transactions, the movement of money credited to their accounts and subsequent withdrawals or transfers are being scrutinised as part of the investigation.
Bank records, loan documents, details of the pledged ornaments and transaction records from the associated accounts are expected to form a crucial part of the investigation. The EOW is also examining whether the prescribed process for verifying the authenticity and value of the gold was followed before the loans were sanctioned.
The case highlights the importance of internal controls and verification procedures in gold lending. Proper assessment of pledged gold and strict compliance with documentation requirements are critical safeguards for banks. Any failure in these processes can expose financial institutions to substantial losses and create opportunities for fraudulent loan disbursements.
The investigation is continuing, with the EOW questioning the accused to establish the complete sequence of transactions, identify the alleged beneficiaries and determine the involvement of other employees or associates. Further arrests or action against additional individuals may follow if their roles are established during the investigation.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
