Mumbai: Man takes out loan against fake gold from Colaba bank; probe underway

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The Colaba Police recently uncovered a fraudulent scheme involving three persons who availed of a loan of Rs 18.70 lakh from a bank by using counterfeit gold as collateral. The person entrusted by the bank to assess the authenticity and value of the gold was complicit in the fraudulent act.

Here's how the scheme unfolded: An individual named Anil Mote sought a loan from the bank, pledging his gold as security. The bank engaged the services of one Bhairawlal Jain to evaluate the genuineness and appraised value of the gold.

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The evaluator, Jain, purportedly estimated the value of the gold at Rs 18.70 lakh, leading to the bank granting Mote the loan.

Initially, Mote diligently repaid the loan. However, he later defaulted on his payments, prompting the bank to issue a warning to sell the gold should he fail to settle his dues. In response, Mote provided written consent for the bank to proceed with the sale of the gold.

When the bank attempted to sell the gold, it was revealed to be counterfeit. Consequently, Mote and Jain have been accused of perpetrating a fraudulent act.

During the police investigation, Mote claimed that an individual named Devidas Kawad had supplied him with the bogus gold, and the money obtained from using it as collateral had been deposited into Kawad's account.

The police have registered a First Information Report (FIR) in this matter, and further inquiries are currently underway.