A major gold loan scam has been uncovered at the Union Bank of India’s Nagalapuram branch in Tirupati district. The bank’s deputy manager, Arava Suryatej, is accused of defrauding both the bank and 67 account holders by misusing 5,498 grams of gold worth ₹2.35 crore.
How the Scam Was Executed
The fraud came to light during a recent bank audit, which revealed that the scam was carried out in two phases.
- Pawning Customer Gold for Personal Gains
- Suryatej allegedly took gold from 30 customers and pawned it at local pawn shops and private finance firms in Puttur, collecting over ₹1.04 crore.
- Manipulating Bank Processes to Secure More Loans
- He then used fake names to re-pledge the gold of 37 other account holders, securing an additional ₹1.31 crore from the bank.
Legal Action and Investigation
After the scam was detected, Tirupati Regional Deputy General Manager Brahmaiah filed a complaint against Suryatej and branch manager Sekhar Thiruvaraj at the Nagalapuram police station.
However, the police have not yet arrested the accused. Nagalapuram Sub-Inspector P. Sunil stated, “We are conducting an inquiry and collecting all necessary evidence before making any arrests.”
Impact on the Banking Sector
This fraud has raised serious concerns about internal security and monitoring within banks. A bank official confirmed that they are reviewing all records and will implement stricter security measures to prevent such scams in the future. More details about this incident will be released soon.