Raichur: CEN police in the district have received a complaint against a bank manager accused of defrauding customers of Rs 10.9 crore under the pretense of gold loans.
Last week, Sujeet D’Souza, a zonal officer at Bank of Maharashtra in Vidyanagar, Hubballi, filed a complaint at the CEN police station against K Narendra Reddy, the manager of the Bank of Maharashtra branch near Gandhi Chowk in Raichur. Reddy, a native of Prakasam district, Andhra Pradesh, allegedly misappropriated funds between October 14, 2022, and March 7, 2025.
An internal audit revealed that Reddy siphoned off Rs 10.9 crore from customers through unauthorized gold loans and deposits, lacking proper documentation. The complaint further states that he misused gold deposited by clients and conducted unauthorized fund transfers.
Over his three-year tenure, Reddy allegedly created 105 fraudulent accounts in customers’ names without their knowledge, diverting funds to accounts he opened in his relatives’ names. Investigators found that he funneled money into 29 fraudulent accounts and transferred Rs 88 lakh to a former bank colleague in Kurnool, Andhra Pradesh.
A senior police officer, speaking anonymously, confirmed that Reddy fabricated documents to falsely indicate gold deposits, enabling him to embezzle large sums. The fraud was uncovered during an internal audit by senior bank officials.
Authorities believe the total amount involved may be even higher. Reddy is currently absconding, and efforts are underway to apprehend him. Further details are expected after his arrest, according to the investigating officer.
