Now Reading: HC orders CID probe into IndusInd Bank fake gold loan case
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HC orders CID probe into IndusInd Bank fake gold loan case
Karnataka high court has directed the Criminal Investigation Department to probe a Rs 1.5 crore cheating case at IndusInd Bank's Peenya branch, after police uncovered fake gold ornaments being pledged for loans. Justice M Nagaprasanna rejected a petition by two bank officials seeking to quash the FIR.
Branch head Debopratim Dutta and zonal credit manager Rambabu CM had argued police summoned them without attaching a copy of the FIR. The judge ruled that procedural errors did not mask the allegations.
The case originated in July when Bengaluru resident Jagadish complained that a man named Nagesh duped him into depositing Rs 1.5 crore in the bank. Police later arrested three persons, including Nagesh and a gold appraiser, for a larger fraud where fake gold was used to secure loans worth several crores.
Indian Opinion Analysis
The case exposes a gap in how banks verify gold pledged for loans. IndusInd Bank's internal processes accepted fake ornaments, allowing crores in fraudulent loans. The CID probe now shifts scrutiny from individual accused to systemic lapses. Similar gold-loan frauds have surfaced at other private banks in Karnataka in recent years. The next actionable date will be when CID files its first status report in the high court, likely within 90 days.
Source: timesofindia.indiatimes.com
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