Two ex-finance managers held over gold loan rule violations in Hyderabad

Oct 17, 2014, 10:32 IST | PTI

Hyderabad: Police today arrested two former managers of non-banking finance companies (NBFCs) for alleged violation of RBI's guidelines while granting loan on gold pledged by chain snatchers.

Aneesh Kumar and Shaik Nagul Meeran, who worked with two well-known NBFCs headquartered in South India, were nabbed and cash and other items worth Rs one crore recovered from them, Cyberabad Police Commissioner C V Anand told reporters.

He said 3.75 kg gold ornaments and gold pieces, Rs 4.5 lakh in cash, two cars and household furniture were seized from the duo after they were rounded up based on the confession of associates of a notorious chain snatcher Shiva. Kumar and Meeran, who were posted in the city, violated RBI rules while pledging gold from three members of Shiva's gang, the Cyberabad Police chief said.

The gang members, arrested earlier, have confessed to more than 700 chain snatchings and committing other offences under Cyberabad, Hyderabad Police Commissionerate limits and also other districts of Andhra Pradesh and Telangana, he said. The accused used to mortgage the stolen booty at pawn brokers and non-banking finance companies by creating fake identity cards, the senior police officer said. The private financiers mortgaged the property without proper verification of documents, required under the KYC norms, and by overlooking other RBI guidelines, he said.

"The two NBFCs have wittingly or unwittingly have committed offences and are liable to be prosecuted under IPC Sections 411 and 412," Anand said. The two sections deal with offences related to dishonestly receiving stolen property. Police will be sending a letter to RBI seeking cancellation of licences of these two NBFCs, he said.

The complicity, if any, of Vigilance Officers of these non-banking finance firms, who are said to be absconding, will also be ascertained, Anand added.

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