Goldsmith among 7 arrested for taking loans worth Rs 70 lakh by pledging fake gold in Balasore

Balasore Police on Saturday arrested seven persons, including a goldsmith, in connection with the alleged case of loan fraud by pledging fake loans at Central Bank. The accused Goldsmith has been identified as Padmalochan Rana, who was working for the bank for assessing the authenticity of gold as well as the valuation of the yellow metal.

Senior police officials informed that Rana used to arrange customers and certify fake gold as original. On the basis of his report, the bank used to sanction gold loans to the customers.

It is alleged that around 14 customers had pledged fake gold and availed loans to the tune of Rs 70 lakh. The matter came to light after a central team from Bhubaneswar visited the bank and found the gold to be fake. Later, a formal police complaint was filed by the concerned manager of the Central Bank.

“We had received a complaint in which it was alleged that 14 customers had deposited fake gold and taken loans to the tune of Rs 70 lakh. The goldsmith was working for the bank for the past five to six years. It was on the basis of the goldsmith’s report and valuation, the bank used to issue loans,” said Balasore City DSP, Gayatri Pradhan.

Pradhan added that further investigation is underway to ascertain the involvement of other persons and bank staff in the fraud.