Branch Manager, Gold Valuer and Customers Named in FIR Over Alleged Fake Gold Loan Scheme
A major alleged gold loan fraud has surfaced at the Kakadeo branch of Muthoot Fincorp Limited in Kanpur, Uttar Pradesh, where the company has accused 18 individuals, including a former branch manager and a gold valuer, of facilitating loans worth approximately ₹1.99 crore against allegedly fake or low-purity gold jewellery.
Based on a complaint filed by the company, Kakadeo Police have registered an FIR and launched an investigation into the alleged irregularities. Authorities are examining whether the accused acted individually or as part of an organised network.
The case highlights the importance of robust internal controls, valuation standards, and auditing services in india in preventing financial fraud within the lending sector.
Company Alleges Fraudulent Gold Loan Approvals
The complaint was filed by Amit Kumar Singh, Senior Regional Manager of Muthoot Fincorp Limited.
Police registered a case against:
- Former branch manager Pradeep Shukla
- Gold valuer Nikhil Kumar Bajpai
- Sixteen other individuals
The FIR relates to alleged fraud and other applicable offences. The investigation is ongoing.
Alleged Irregularities Found During Internal Review
According to the company's preliminary investigation, multiple gold loans were sanctioned at the Kakadeo branch between April and June 2026.
The company alleges that fake or low-purity gold ornaments were presented as genuine high-purity jewellery, enabling customers to obtain loans that exceeded the actual value of the pledged assets.
These allegations have not yet been tested before a court.
Re-Evaluation Raises Purity Concerns
During an internal audit, the company reportedly re-evaluated the pledged jewellery.
According to the complaint:
- Many ornaments were found to have a purity of only 8% to 15%.
- Despite this, 30 gold loans had allegedly been approved against the jewellery.
- The company estimates the resulting financial loss at approximately ₹1.99 crore.
Branch Manager and Valuer Under Scrutiny
The company alleges that:
- The branch manager approved the disputed loans.
- The gold valuer allegedly certified incorrect valuations despite the jewellery's actual quality.
Investigators are also examining the alleged role of several customers who reportedly pledged the jewellery.
These remain allegations under investigation.
Recovery Efforts Before Legal Action
According to the complaint, the company contacted the concerned customers after discovering the alleged discrepancies and requested that they repay the outstanding loans and reclaim the pledged jewellery.
The company alleges that several individuals failed to repay the amounts, prompting it to initiate legal proceedings.
Police Probe Wider Network
Kakadeo Police are examining:
- Branch records
- Gold valuation reports
- Loan approval documents
- Financial transactions
- Customer records
Investigators are also assessing whether similar gold loans may have been sanctioned previously using the same alleged method.
Officials stated that the investigation will determine whether the alleged fraud involved an organised network or isolated misconduct.
Investigation Continues
Police said further legal action will depend on evidence gathered during the investigation.
Authorities are examining the role of each accused, the financial trail linked to the loans, and whether the individuals may have been involved in other similar cases.