NEW DELHI – The Central Bureau of Investigation (CBI) has officially registered a case to probe a massive gold loan fraud that has rocked the Bank of India (BOI) in Hyderabad.
The investigation, transferred to the central agency following orders from the Hon’ble Lokpal of India, centers on allegations that bank officials conspired with a professional gold appraiser to sanction loans against spurious ornaments.
The Conspiracy and Modus Operandi
The fraud involves 44 gold loan accounts belonging to 27 borrowers across the Khairatabad and Bashirbagh branches of Bank of India. According to the FIR, the primary architect of the scam was Mr. Deekonda Bhanu Chander, an empaneled gold appraiser for the bank.
Between April and August 2024, Chander allegedly issued fraudulent valuation certificates, knowingly certifying non-gold articles as genuine gold. These certificates were then used by complicit bank staff to sanction and disburse loans. The investigation has identified two key bank employees:
- Mohammed Kalim Baig: Then-Manager (Credit) at the Khairatabad branch.
- Arif Ahmed Syed: A Special Assistant/Clerk at the Khairatabad branch.
Syed is further alleged to have facilitated the scam by ensuring several of the spurious loans were sanctioned to his own near relatives.
The Whistleblower in Siddipet
The scam began to unravel following the transfer of Mohammed Kalim Baig to the Siddipet branch as Branch Manager in July 2024. Shortly after his arrival, Baig attempted to sanction five gold loans using the same Hyderabad-based appraiser, Bhanu Chander.
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A suspicious staff officer at the Siddipet branch questioned why borrowers and an appraiser from Hyderabad were operating in Siddipet. A re-valuation by a local appraiser confirmed that the pledged ornaments in those five accounts were spurious.
While no financial loss occurred at the Siddipet branch because the accounts were closed immediately, the discovery prompted a mass re-appraisal of all gold loans Chander had handled in other branches.
Financial Impact and Legal Action
A total of ₹4,42,70,000 was disbursed based on Chander’s fraudulent appraisals. As of October 10, 2024, the bank estimated the total outstanding due, including interest, at ₹4,51,65,495. The bank has noted that recovery is extremely difficult as the pledged security has no actual gold value.
The CBI’s Anti-Corruption-I unit in New Delhi has now booked the accused under multiple sections of the Bharatiya Nyaya Sanhita (BNS) and the Prevention of Corruption Act, 1988. Charges include:
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- Criminal Conspiracy
- Criminal Misconduct by Public Servants
- Criminal Breach of Trust
- Cheating
The case has been entrusted to Inspector Pratik Kumar for a comprehensive investigation.