ELURU: Police on Wednesday arrested three Bank of Baroda officials in Jangareddygudem for their alleged involvement in a Rs 10-crore gold loan fraud, Eluru District SP K Pratap Siva Kishore told reporters.
The case, registered on June 16, was investigated under the supervision of the SP and Jangareddygudem SDPO B Venkateswarlu.
The arrested officials are former branch manager Kumarapu Bhaskara Rao (35), joint manager Tanneru Ajay Babu (40) and credit officer Jangala Sairaj (33).
Police examined bank records, loan accounts, locker management and staff statements, uncovering irregularities in 176 accounts. Gold pledged by customers was allegedly misappropriated and replaced with imitation jewellery. About 6.449 kg of gold worth nearly Rs 10 crore was found missing.
Police said preliminary evidence pointed to negligence and complicity in handling pledged gold. Earlier, gold appraiser Chalapaka Raju (40) was arrested on July 10. Assets worth Rs 5.81 crore, including 4.120 kg of jewellery and Rs 10 lakh cash, were seized from him and from locations where the ornaments were allegedly sold or pledged.
Police said the three officials will be produced before the court. Further investigation is underway to recover the remaining gold, trace financial transactions and identify other suspects. SP Kishore warned that strict action will be taken against those involved in banking fraud and financial crimes.