Gold loan fraud involving fake jewellery uncovered at city bank

Prayagraj: A major fraud in the name of gold loans has come to light at the Civil Lines branch of a private bank in Prayagraj, where fake gold was allegedly pledged with the connivance of authorized gold appraisers to secure loans worth lakhs of rupees.According to regional head and assistant general manager of the bank, Pankaj Verma, who lodged the complaint at Civil Lines police station, the bank follows a standard procedure in which authorized gold appraisers verify the purity and value of jewellery before sanctioning loans. Under this system, several borrowers were granted gold loans in 2023 after due verification.However, as per the bank's rules, periodic re-verification of pledged gold is mandatory.

During inspections, officials discovered that the jewellery pledged against multiple loans was fake, triggering shock and concern within the bank.Following the revelation, the bank termed the case a serious instance of fraud and criminal breach of trust. An FIR was registered against 18 individuals, including two gold appraisers — Vishnu Verma and Kaushal Kishore Verma.Officials stated that loans ranging from Rs 2 lakh to Rs 5 lakh were sanctioned in multiple cases, and with accumulated interest, the total outstanding liability has now reached several crores of rupees.

Bank authorities have demanded strict legal action, stating that the fraud involved deliberate manipulation of the appraisal process and misuse of banking procedures. Station House officer, Civil Lines, Ramashray Yadav, confirmed that an FIR was registered and a detailed investigation is under way. He added that further legal action will be taken based on the findings of the probe.