Telangana: The Khairatabad branch of Bank of India (BOI) has uncovered a significant fraud where loans worth Rs 4.4 crore were granted against fake gold ornaments. The Central Crime Station (CCS), Hyderabad, is currently investigating the scam, although no arrests have been made so far.
How the Scam Unfolded
The fraud came to light when BOI officials grew suspicious of the activities of certain employees at the Khairatabad branch. Upon further investigation, it was revealed that a few branch employees, an authorised gold evaluator (goldsmith), and several customers had formed a nexus to siphon off money by pledging imitation gold ornaments. The fraudulent activities took place between April and August.
Role of Employees and Goldsmith
Typically, when granting gold loans, bank officials call on an authorised goldsmith to verify the purity of the pledged gold. In this case, bank staffer Kalim Baig granted loans based on fake certificates issued by goldsmith D Bhanuchander, who certified imitation gold as genuine. This allowed the customers to secure loans for the fake ornaments.
The scam began in April 2024 and continued until July when Baig was promoted and transferred to BOI’s Siddipet branch. Even after his transfer, Baig continued using Bhanuchander’s services, raising suspicion among his colleagues.
Investigation and Discovery
The fraud was discovered when one of Baig’s colleagues noticed that Baig was still using Bhanuchander’s services instead of the local authorised goldsmith in Siddipet. Furthermore, most of the loan applications processed by Baig came from Hyderabad, even though he was now in Siddipet. When the pledged gold ornaments were re-evaluated, it was confirmed that they were fake.
After the scam was exposed, BOI launched a thorough investigation into all the loans processed by Baig at the Khairatabad branch. Authorities found that Baig had issued loans against 44 accounts, many of which were connected to his colleague, Arif Ahmed’s relatives. The investigation also revealed that Bhanuchander had committed a similar fraud at BOI’s Basheerbagh branch.
Current Status
While no financial loss has been reported from BOI’s Siddipet branch, the investigation into Baig’s past transactions continues. The CCS is probing the case, and further details are awaited as the investigation progresses.
