In a shocking case of fraud, 6 kilograms of gold stolen by Madhu Jayakumar, a former manager of the Bank of Maharashtra’s Vadakara branch, have been recovered by the police. The stolen gold was traced to various banks in Tirupur, Tamil Nadu. Specifically, 1.5 kilograms were recovered from the Catholic Syrian Bank, while another 4.5 kilograms were found in the Singapore-based DBS Bank.
The Unfolding of a Major Fraud
The police revealed that Madhu Jayakumar had been pawning the stolen gold at different banks across Tamil Nadu. The money he received from pawning the gold was then invested in the stock market. Despite this recovery, a significant 20 kilograms of gold is still unaccounted for. Authorities have also taken a DBS Bank employee into custody as part of the investigation, suggesting possible involvement in the scheme.
How the Fraud Came to Light
Madhu Jayakumar served as the manager of the Vadakara branch for three years before being transferred to the Palarivattom branch in Ernakulam district on July 6. However, the fraud only came to light after his transfer, when Irshad, the new branch manager and a native of Panur, conducted an inspection and discovered the discrepancies.
The investigation revealed that the fraud was carried out between June 13, 2021, and July 6, 2024, involving 42 bank accounts. Despite the large-scale embezzlement, totaling 26.24 kilograms of gold from these accounts, no customer had filed a complaint with the police.
Unanswered Questions and Ongoing Investigations
The fact that none of the customers reported the missing gold has led to speculation that all the gold might belong to a single individual. The police are currently following leads that could shed more light on this mystery, and further investigations are ongoing to recover the remaining 20 kilograms of gold.
This case has raised serious concerns about security and oversight in the banking sector, especially regarding how such a significant fraud could go unnoticed for so long. The involvement of bank employees in such schemes also highlights the need for stricter internal controls and monitoring to prevent similar incidents in the future.
If an incoming Manager could find the fraud on his charge taking time itself – what were the Branch Auditors were doing? A branch with such large exposure is expected to be audited at least once a year. In the Bank [Corporation Bank] where i was working, periodical surprise verification of attendance, punctuality, cash on hand and such valuables [Gold Loans] was made by an officer from another branch of the Bank. Our governing motto was: Trust – But verify.