IOB assistant branch manager held in ₹3.09-crore gold loan fraud
An assistant branch manager of Indian Overseas Bank was arrested over allegations of converting pledged gold into fake ornaments and using funds for online gaming and personal expenses. Police say 2,179 grams of pledged gold were replaced, with the suspect pledged to private financiers and later rem
Key takeaways
- An assistant branch manager at Indian Overseas Bank was arrested in connection with a gold loan fraud case valued at ₹3.09 crore.
- Investigators allege replacement of 2,179 grams of pledged gold with fake ornaments and pledging the gold to private financiers.
- Funds raised were reportedly used for online gaming and personal expenses, according to police findings.
- The arrest followed a complaint filed by the bank’s branch manager on August 13, and the suspect was remanded in judicial custody.
What Happened
The Central Crime Branch arrested an assistant branch manager of Indian Overseas Bank for allegedly committing a gold loan fraud valued at ₹3.09 crore. The officer, Potnuru Murali Krishna, 34, worked at the bank’s Ayanavaram branch and is a native of Visakhapatnam, Andhra Pradesh, residing in Purasawalkam. A complaint filed on August 13 by the branch manager led investigators to the case. The inquiry determined that the accused replaced 2,179 grams of pledged gold jewelry with imitation ornaments and pledged the original gold with other private gold financing firms to raise funds. Investigators say the obtained money was used for online gaming and personal expenses. A court produced the suspect, who was remanded in judicial custody following the arrest by the Bank Fraud Investigation Wing of the Central Crime Branch.
Why It Matters
The case highlights alleged breaches of fiduciary duties by a bank official handling customers’ gold collateral and the potential use of pledged assets to fuel personal spending and online gambling. The involvement of a central crime branch unit indicates a formal financial fraud investigation extending beyond the local branch level. The development may prompt reviews of security controls surrounding pledged assets in bank branches and the processes for verifying replacements or substitutions of pledged jewelry.
Background
The Bank Fraud Investigation Wing of the Central Crime Branch led the inquiry following a complaint from the Ayanavaram branch manager. The incident involves the alleged handling of pledged gold jewelry by a bank employee and subsequent steps to raise funds through external financiers, with funds reportedly used for non-work activities.
Key Facts
- Subject: Potnuru Murali Krishna, 34, assistant branch manager at Indian Overseas Bank, Ayanavaram branch.
- Claim: Replaced 2,179 grams of pledged gold jewelry with fake ornaments.
- Value: Fraud amount estimated at ₹3.09 crore.
- Action: Funds raised by pledging original gold with private gold financing firms; funds used for online gaming and personal expenses.
- Legal: Complaint filed August 13; arrest by the Central Crime Branch; produced in court and remanded in judicial custody.
- Origin: Krishna is a native of Visakhapatnam, Andhra Pradesh; resident of Purasawalkam.
What Happens Next
Legal proceedings are proceeding in court following the remand. The investigation by the Bank Fraud Investigation Wing is ongoing as authorities determine the extent of the alleged activity and any additional individuals or transactions involved.
Sources reviewed
Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.
Related stories
Special enrolment drive at Visakhapatnam polling stations for SIR-2026
India pushes stronger global tech ties at BRICS STI meeting
Court lauds scrapped MGNREGA as salutary, rejects label of freebie
