Co-op banks cheated by pledging fake gold: 2 managers suspended, 3 staff arrested

Mangalore Today News Network

Kasargod, June 8, 2016: Two co-operative bank managers have been suspended and three other staff taken into  police custody in connection with cases of cheating of the banks of nearly Rs 3.78 crores by pledging fake gold.

 Santosh, Branch manager of Vidyanagar branch of Muttathodi Co-operative Bank and Vijilesh, Branch Manager of Nayammaramoole branch of the Bank  were suspended while bank staff  Sathyapalan (45), Jayarajan (45)  of Pallikere and K A Abdul Majeed (29) have been arrested and remanded to judicial custody.

If the Nayammaramoole branch was cheated of Rs 3.56 crores, the Vidyanagar branch was cheated of Rs 22.25 lakhs.

Currently, Vidyanagar police are investigating the case which  is likely to be handed over to the Crime Branch.

Investigations so far have revealed that as many as 50 people including women have pledged gold to borrow loan.

The fraud came to light after the  gold which  was pledged by one Majid who had borrowed Rs 7 lakhs was found to be fake later on. On scrutiny it was found that  Majid and some of his friends had  borrowed Rs 50 lakhs after pledging fake gold.

Investigation revealed that there was a large network behind this fraud.