Berhampur Police Uncover Gold Loan Scam Defrauding Banks, 3 Held

Berhampur: Personnel of Baidyanathpur police station in Berhampur have arrested two men and detained another for an elaborate scam involving fake gold jewelry that defrauded multiple banks and an individual of over Rs 24 lakhs.

The case was registered on August 26, 2025, after a complaint from P Purushottam, 50, who was allegedly duped by the accused.

According to police, Purushottam was convinced by the suspects named Biswajit Kar, Abhinab Srivastab, and Sk. Manjur Elahi, to take out gold loans in his name and his relatives’ names using counterfeit jewellery.

The con artists told him their CIBIL scores were too low to get loans themselves and promised him a commission.

Purushottam mortgaged the fake gold at various banks, including Bank of Maharashtra, Federal Bank, and Axis Bank. The fraudsters then took the entire loan amount, leaving Purushottam and his relatives responsible for a total of more than Rs 24 lakhs.

The scam was exposed when a person who bought the “gold” at auction discovered it was fake. Police have seized several pieces of imitation jewelry and are investigating potential complicity from bank officials.