₹7.3 crore gold loan fraud exposed at Canara Bank Badnapur branch, two arrested

A major fraud involving misappropriation of gold ornaments worth ₹7.3 crore has been uncovered at a branch of Canara Bank in Badnapur, Maharashtra. The scam, which includes replacing pledged gold jewellery with fake ornaments and disappearance of several gold packets, has led to a police case against a bank officer, the branch manager, and a gold appraiser. Two of the accused have been arrested so far.

The fraud came to light during a routine quarterly revaluation of gold loan packets conducted on April 22. During the inspection, officials discovered multiple pledged packets containing fake jewellery, while several others were found missing from the strong room. A complaint was subsequently lodged at the Badnapur police station by a senior bank official, prompting a detailed investigation into the irregularities.

According to police findings, 22 gold loan packets contained fake jewellery valued at approximately ₹3.8 crore, while 30 packets worth ₹3.5 crore were missing entirely, taking the total fraud amount to ₹7.3 crore. CCTV footage examination reportedly revealed a bank officer removing gold packets from the strong room and concealing them, indicating direct involvement in the theft.

Investigators have alleged that the branch manager violated established security protocols by allowing the officer unsupervised access to the strong room. The gold appraiser, on the other hand, is accused of certifying fake ornaments as genuine, thereby facilitating the fraud. A case has been registered under relevant sections of the Bharatiya Nyaya Sanhita, and further arrests are considered likely.

Police officials stated that the case appears to involve criminal breach of trust and internal collusion. Authorities are currently tracing the financial trail, examining bank records and CCTV footage, and probing the possibility of a wider conspiracy. The bank has also initiated internal action and recovery proceedings as the investigation continues.