SBI loan scam: Lookout notice against jeweller

THE FRAUD CAME TO LIGHT WHEN THE GOLD DEPOSITED BY A CUSTOMER, WHO WANTED TO RENEW HIS LOAN, CHANGED COLOUR

HOSHIARPUR : A lookout circular has been issued against the jeweller, who had certified fake gold as pure to let a major gold loan scam take shape in the Bulhowal branch of the State Bank of India (SB). The bank authorities have, in the meantime, transferred head cashier Avtar Singh and accountant Chaman Lal.

Jeweller Jatinder Kumar, who ran a shop in the name of Lord Krishna Jeweller in Bulhowal, wrongly certified at least 224 gold ornaments, which were pledged with the bank to avail loans.

A financier, who is said to be the mastermind behind the fraud, would mortgage these ornaments with the bank in the names of different people and draw huge loan amounts.

Investigating officer, deputy superintendent of police Jang Bahadur Sharma said that all airports have been alerted so that the accused did not leave the country.

He revealed that the police were also examining the CCTV footage of the bank to verify if the loanees themselves had been going to the bank for transactions or the financier who, they claim, was dealing with the bank on their behalf.

"The borrowers have claimed that they had left everything on financier Sukhwinder Pal Singh of Fatehpur, who took huge loans, but gave them only a small amount. We are verifying their claim," the DSP said, informing that the financier was still in judicial custody.

The internal inquiry of the bank had detected that of the 290 gold loan cases approved between May 2015 and February, substandard gold was deposited with the bank in 224 cases, causing a loss of around ₹4.65 crore to the bank.

The fraud came to light when the gold deposited by a customer, who wanted to renew his loan, was found to have changed colour.

On examination by another jeweller, it was found that the pledged jewellery was substandard.

RTI activist Rajiv Vashisht, who blew the lid off the scam, said that bank officials' role should also be thoroughly investigated.

"The RBI instructions are clear that the assessment of the pledged jewellery in case of gold loans rested with the head cashier or the cash-in-charge. They are accountable for the loss to the bank," he said.