Bank Manager, Two Others Arrested for ₹2.88 Crore Fraud with Fake Gold

Quick Summary

• The manager of Central Cooperative Bank’s Tiruvannamalai town branch, K. vijayalakshmi, and two others-S. Gopinathan (gold appraiser) and B. Elumalai (agent)-were arrested for defrauding the bank of ₹2.88 crore using fake jewellery.
• Internal audit revealed that 21 loans were granted in 2024 based on forged appraisal reports and fake jewellery pledges.
• Valid documents like Aadhaar and ration cards of 21 individuals were used to support the fraudulent loans.
• Police examination found collusion between the bank manager, staff, local agents, and residents of surrounding villages to forge documents for loans.
• A case was registered based on a complaint by Deputy Registrar of Cooperatives, S. Vasanthalakshmi; special teams are pursuing further suspects from the implicated group.

Published – August 13, 2025

Indian Opinion Analysis

The exposure of this fraud highlights vulnerabilities in banking practices related to gold loan disbursements at cooperative banks. The use of fake jewellery alongside valid identity documentation points to systemic loopholes in both physical asset verification procedures and document scrutiny protocols within such institutions. This incident underscores the importance of implementing stringent auditing mechanisms as part of standard operations to prevent misuse by internal staff or external collaborators.

Furthermore, cooperative banks play a critical role in supporting rural credit ecosystems across India; reputational damage from such cases can hinder trust among communities dependent on these financial services for their livelihood needs. Addressing governance issues transparently while ensuring accountability will be pivotal for restoring confidence in similar institutions nationwide.

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