Business · India Bureau
IOB assistant manager held in ₹3.09-crore gold loan fraud case
Police have arrested an assistant branch manager with Indian Overseas Bank on charges related to a major gold loan fraud scheme. The alleged fraud, valued at over ₹3 crore, is being investigated by authorities.
LSN India ·
An assistant branch manager employed with Indian Overseas Bank (IOB) has been arrested in connection with a gold loan fraud scheme amounting to ₹3.09 crore, according to police officials. The arrest follows a formal investigation into irregularities detected in loan disbursement procedures at the bank's branch.
Investigators allege that the accused official allegedly facilitated unauthorised gold loans and diverted funds through fraudulent documentation and falsified records. The modus operandi involved manipulating loan applications and customer verification processes to enable the illegal disbursements.
The case came to light when discrepancies in the bank's gold loan portfolio were flagged during an internal audit. Bank officials subsequently alerted law enforcement, triggering a formal criminal inquiry into the matter.
Authorities have registered a case under relevant sections of the Indian Penal Code and are conducting further investigations to determine the extent of the fraud and identify any other individuals involved. The arrested official is currently in police custody pending further procedural formalities.