Fraud in Gold Loan Company: Employees Scam ₹8 Crore with Fake Gold Ornaments

NEWS CHARIOT : In a shocking incident, employees of a gold loan company in Chittoor district have allegedly scammed ₹8 crore by pledging fake gold ornaments with the help of their relatives and acquaintances. The incident, which came to light late, involves the ‘Kanakadurga Gold Loans Company’ headquartered in Vijayawada, which operates branches in Punganur and Palamaner.

The company provides loans by accepting gold ornaments as collateral, offering loans ranging from 70 to 80 percent of the market value. However, six employees from the company are suspected of exploiting this system to easily pocket large sums of money.

The accused employees selected 20 people, including relatives and acquaintances, and used them to pledge fake gold ornaments. During an internal audit in December, the company discovered that fake gold items had been used in several loan transactions, leading to a loss of several crores. An immediate internal investigation revealed that the fraudsters had, in total, swindled over ₹8 crore – ₹5 crore from Punganur and ₹3 crore from Palamaner – by pledging more than six kilograms of fake gold.

The company management filed a police complaint against the six employees and their accomplices on Thursday. Following this revelation, people who had pledged their gold with the company are now in a state of panic and fear, as they are unsure about the authenticity of their gold.

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