Balasore: Seven persons, including a goldsmith, were arrested in connection with a fraud involving Rs 70 loan availed from a bank by using fake gold in Odisha’s Balasore district.
The accused persons were arrested on Saturday following a probe into a complaint lodged with the police by the bank.
The accused goldsmith, identified as Padmalochan Rana, had been engaged by the bank for assessing the authenticity of gold as well as its valuation.
Police said Rana used to arrange customers and certify fake gold as original. On the basis of his report, the bank used to sanction gold loans to the customers.
Over 14 customers were reported to have deposited fake gold and availed loans amounting to Rs 70 lakh. The matter came to light when a team from Bhubaneswar visited the bank and found the gold to be fake. Thereafter, a police complaint was filed by the concerned manager of the Central Bank.
The goldsmith had been working for the bank for the past five to six years and the bank used to sanction loans on the basis of his report and valuation, a police official said.
Further investigation is in progress to ascertain the involvement of other people and bank staff in the fraud.
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