Appraiser of private bank among three held for ₹1.5 crore gold loan fraud

A gang of three, including a bank appraiser, has been detained by Peenya police for allegedly orchestrating a gold loan fraud worth nearly ₹1.5 crore. The suspects, comprising the prime accused, his associate, and the appraiser, are suspected of running a scheme involving fake jewellery and fraudulent accounts to siphon off funds from a private bank. The investigation suggests that the accused conspired to establish fictitious bank accounts under the names of acquaintances. According to police reports, the prime accused allegedly enticed individuals into opening these accounts by promising monetary incentives, claiming that their gold items would be used as collateral for loans. Once the accounts were set up, the prime accused allegedly coordinated with the appraiser, who was tasked with assessing the value of the pledged gold. The appraiser, using his position, verified the authenticity of the gold, certifying imitation pieces as genuine. This allowed the bank to approve gold loans based on inflated valuations, thereby enabling the accused to access the funds. Police allege that the group created approximately 15 fake accounts and secured loans totaling around ₹1.5 crore. The appraiser reportedly received a commission of ₹2.5 lakh for each ₹10 lakh loan approved. The fraud was uncovered during an internal audit conducted by the bank, which flagged discrepancies in the pledged gold and loan records. In addition to the main scheme, the prime accused allegedly engaged a businessman named Jagadisha S. through a mutual acquaintance. He informed Jagadisha that the bank was planning to auction gold pledged with the institution and offered to buy the gold at ₹9,000 per gram, falsely assuring him that it could later be resold for ₹13,000 per gram. Jagadisha, believing this promise, transferred ₹1.53 crore to the accused. The accused then deposited the money into the bank account to evade legal consequences before fleeing the scene. Upon realizing that the gold was not delivered as promised, Jagadisha approached the Peenya police and lodged a formal complaint on July 28. Following the filing of the complaint, the police initiated an investigation and raided the hideout of the prime accused and his associate in Karwar. During the interrogation, the two confessed to their involvement in the fraud, prompting the authorities to detain the appraiser for further questioning to determine the full scale of the deception. The case highlights the vulnerabilities within financial institutions regarding internal controls and verification processes. It underscores the need for stricter oversight mechanisms to prevent such fraudulent activities. As the investigation continues, the appraiser's role in the scheme remains under scrutiny, with authorities seeking more information on how the fraud was executed and whether other accomplices are yet to be identified. The police are currently examining the financial transactions linked to the case to trace the flow of illicit funds and identify potential beneficiaries.