Hans News Service Eluru

TheEluru district police successfully detected a major gold loan fraud involving large-scale financial irregularities and criminal breach of trust at the Bank of Baroda, Jangareddygudem Branch on Friday. Approximately Rs 10 crore was misappropriated. Chalapaka Raju (40) of Velampeta in Jangareddygudem, gold appraiser at Jangareddygudem Branch, was the main accused.

The police arrested him and recovered 4.120 kgs of gold worth Rs 5,71,65,000 and Rs 10,00,000 in cash. Under the supervision of the Eluru district Superintendent of Police K Pratap Shiva Kishore, Assistant Superintendent of Police & SDPO, Jangareddigudem, R Sushmitha arrested the accused. Based on a complaint lodged by the Senior Branch Manager of the Bank of Baroda, Jangareddygudem Branch, a case was registered at Jangareddygudem Police Station and investigation was taken up. During the course of the investigation, it was found that serious irregularities had been committed in 176 gold loan accounts. The investigation revealed that the accused, while working as the gold appraiser, dishonestly misappropriated the gold ornaments pledged by customers for obtaining gold loans and replaced them with imitation ornaments and other worthless materials.

It was established that approximately 6.4495 grams of gold had been misappropriated, with an estimated market value of about Rs 10 crore. Further investigation disclosed that the accused had sold and pledged the misappropriated gold ornaments at various jewellery shops in Jangareddygudem in his own name as well as in the names of his parents.

The investigation team collected substantial evidence supporting these transactions. Through sustained investigation and special operations, the police recovered a total of 4.120 kgs of gold along with cash of Rs 10,00,000 from the possession of the accused as well as from various jewellery establishments where the stolen gold had been sold or pledged. The total value of the recovered gold is estimated at Rs 5, 71, 65, 000. Efforts are underway to recover the remaining gold. The accused will be taken into police custody for further interrogation. If the involvement of any other individuals is established during the investigation, stringent legal action will be initiated against them in accordance with law, the police said.

The SP appreciated the exemplary work of Sushmitha, ASP & SDPO, Jangareddigudem, the investigating officers, Jangareddigudem Circle police personnel in successfully detecting this major financial fraud.