Bank alleges fraud after gold loan backed by fake ornaments

The bank valuer certified the two bangles weighing 38.5 grams. Representation pic/istock

Mumbai District Central Cooperative Bank has alleged that it was cheated of Rs 2.48 lakh through a fraudulent gold loan transaction in which fake gold ornaments were pledged as collateral.

According to the complaint filed by Chunabhatti Branch Manager Manjusha Jadhav, the accused, Ganesh Vilas Shelke, approached the branch on May 29, 2025, seeking a gold loan. The ornaments were examined by the bank's approved gold valuer, Amit Babulal Vaishnav, who certified two bangles weighing 38.5 grams and valued them at Rs 2.90 lakh.

Loan sanctioned

Based on the valuation report, the bank sanctioned a loan of Rs 2.32 lakh. The amount was credited to Shelke's account, and he allegedly withdrew Rs 2.28 lakh in cash from the branch the same day.

Police said Shelke allegedly failed to repay the loan or interest despite repeated notices. During recovery proceedings, the bank decided to re-evaluate the pledged ornaments.

Fake ornaments

The revaluation allegedly revealed that the bangles were silver ornaments coated with gold and not genuine gold. The bank suspects collusion between Shelke and Vaishnav, alleging that the valuer submitted a false report that enabled the loan to be sanctioned.

Case registered

The bank has calculated its loss, including outstanding dues and interest, at R2.48 lakh. Based on the complaint, Chunabhatti police have registered a case against Shelke and Vaishnav under relevant sections of the Bharatiya Nyaya Sanhita for cheating and common intention. Senior Police Inspector Nisha Jadhav said the investigation is underway and no arrests have been made so far.