Gold Loan Scam Exposed at Karnataka Bank Branch; Fake Gold Found in Place of Pledged Ornaments

A serious gold loan fraud has been uncovered at Karnataka Bank’s Mangalpady branch after a customer found that the gold she had pledged earlier had been replaced with fake ornaments. The incident came to light when the customer approached the bank to reclaim 227 grams of pledged gold, but verification revealed that the original gold had been swapped with counterfeit items.

Karnataka Bank’s Mangaluru Deputy Regional Head, Sreesha, has filed a complaint with the Manjeshwar police. According to police, the gold was originally pledged between November 26 and December 6 for a loan of ₹31,50,066. During this period, the genuine gold ornaments were allegedly removed and replaced, leading to a major case of cheating.

As part of the probe, police have already questioned two bank employees. One of them is currently under surveillance, officials confirmed. The investigation is ongoing to determine how the fraud took place and who is responsible.

More details will be released soon.

Fake Gold Loan cases are increasing rapidly in banks. The Government and Banks should enhance the security system. Some of the recent fake gold loan cases are given below:

SBI Files Case Against Customer and Goldsmith for Fake Gold Loan Valuation in Bikaner

Big Gold Scam at Manappuram Finance Dabra Branch; Rs 4.5 Crore Gold Replaced with Fake Gold

Customer says Bank returned Fake Gold Chain on closure of Loan, Complaint against Axis Bank Shivpuri

ICICI Bank Employee in Hanumangarh Caught in Rs.54 Lakh Fraud Involving Fake Gold Loans