Shimla Man Takes Gold Loan with Fake Jewellery, Cheats Bank of ₹5.6 Lakh

NO
News Orbital
October 5, 2025 • 2 views

Shimla:
In a shocking case of financial fraud, a man allegedly defrauded UCO Bank’s BCS branch in Shimla by pledging fake gold jewellery to secure a gold loan. The scam has caused the bank a monetary loss of approximately ₹5.6 lakh, and a police investigation is currently underway.

How the Fraud Unfolded

According to branch manager Rajni Kapoor, the accused, identified as Inder Singh Justa, applied for gold loans on two occasions — February 9 and March 14, 2023. Based on the evaluation of the jewellery, the bank approved loans totaling ₹4.94 lakh.

The jewellery was initially authenticated as 22-carat gold by two local jewelers — Bhagwati Jewellers (Kusumpti) and Agarwal Jewellers (Kandaghat). However, suspicions later arose, prompting the bank to seek a third-party evaluation.

Independent Audit Reveals the Truth

UCO Bank ordered an independent audit by Phobos Gold Technologies Pvt. Ltd., which revealed that the pledged items were not genuine gold jewellery. The bank attempted to recover the loan, but the accused allegedly refused to repay the amount, triggering legal action.

Case Registered Under IPC Sections

Based on the bank’s formal complaint, a case has been filed at the New Shimla Police Station under the following Indian Penal Code (IPC) sections:

Section 420 – Cheating and dishonestly inducing delivery of property

Section 467 – Forgery of valuable security

Section 468 – Forgery for the purpose of cheating

ASP Navdeep Singh confirmed that a detailed investigation is in progress and that the case is being treated with seriousness due to the financial and legal implications.

Bank Vulnerabilities in Gold Loan Schemes

This incident has once again brought attention to the risks associated with gold loan disbursements, especially when external valuations are relied upon without independent verification. Banks may now need to revisit their loan approval protocols to avoid similar incidents.

Comments (3)
Leave a Comment

No comments yet. Be the first to comment!