A significant fraud has been uncovered in Jabalpur, Madhya Pradesh, where gold ornaments pledged as collateral for loans in a nationalised bank were discovered to be counterfeit. The financial loss to the bank from this scam is estimated at Rs 43 lakh, according to police officials.
How the Scam Came to Light
The fraud was detected during a revaluation of pledged ornaments at Punjab National Bank's Sadar branch. Branch officials noticed irregularities in several gold loan accounts and ordered a fresh assessment. Upon reevaluation, it was found that gold ornaments submitted by 12 borrowers were fake.
City Superintendent of Police (CSP) Cantonment, Uday Singh Bagri, stated that the purity of the gold was initially certified by two empanelled valuers associated with the bank. These valuers are now among the accused.
Details of the Fraud
The accused borrowers allegedly secured loans totaling Rs 38.81 lakh by pledging fake ornaments. With accrued interest, the outstanding amount has now reached Rs 43.17 lakh. A case has been registered against 15 persons, including the two valuers, under relevant sections of the Bharatiya Nyaya Sanhita (BNS) pertaining to criminal conspiracy, cheating, and fraud.
Police have seized all bank records related to the matter and are investigating further to identify any additional involvement.
Impact and Investigation
This incident highlights vulnerabilities in the gold loan process, particularly the reliance on valuers whose certification may be compromised. The bank is expected to review its procedures to prevent such frauds in the future.
Authorities are also probing whether the accused had prior connections or if this was part of a larger syndicate. Further arrests may follow as the investigation progresses.
