Bengaluru: Peenya police have uncovered an alleged gold loan fraud worth nearly ₹1.5 crore, arresting two men and detaining a private bank appraiser for allegedly sanctioning loans against imitation jewellery pledged through fake bank accounts.

The arrested accused have been identified as Nagesh and Shashidhar, who allegedly worked in collusion with the bank appraiser to defraud the private bank. Police said the trio is suspected of creating around 15 bogus bank accounts to obtain fraudulent gold loans.

Fake accounts and imitation jewellery used

According to senior police officials, the accused allegedly lured people into opening bank accounts by offering them money and claiming that their jewellery would be pledged to secure loans.

Investigators said the bank appraiser, entrusted with verifying pledged gold, allegedly misused his position by certifying imitation jewellery as genuine. Based on his valuation, the bank sanctioned gold loans, enabling the accused to siphon off nearly ₹1.5 crore.

Police suspect the appraiser received around ₹2.5 lakh for every ₹10 lakh loan sanctioned as part of the racket.

Internal audit exposed the fraud

The scam reportedly came to light during an internal audit by the bank, which detected irregularities in the pledged jewellery and loan accounts.

During the investigation, police also found that Nagesh allegedly approached a businessman, Jagadisha, through a mutual friend, claiming that gold pledged with the bank was due for auction. He allegedly offered to arrange its purchase at ₹9,000 per gram, assuring the businessman it could later be sold for ₹13,000 per gram.

After collecting the money, Nagesh reportedly deposited the amount in the bank in an attempt to avoid legal action before absconding. When the promised gold was not delivered, Jagadisha filed a complaint with the Peenya police on July 28.

Two arrested, probe continues

Based on the complaint, police registered a case and tracked down Nagesh and Shashidhar at their hideout in Karwar, where they were arrested.

Following their interrogation, the bank appraiser was detained for questioning to determine the extent of his involvement. Police said further investigation is underway to ascertain the total financial loss and identify any additional persons connected to the fraud.