ICICI Bank Gold Loan Scam: Rs 23 Crore Fraud Uncovered as Fake Ornaments Found Across Nine Branches in Nagpur

ICICI Bank, one of India's leading private sector lenders has come under the spotlight after a major gold loan fraud worth around Rs 23 crore was detected in Nagpur. The scam has raised serious concerns over verification processes within the banking system.

ICICI Bank Gold Loan Scam: Rs 23 Crore Fraud Uncovered In Nine Branches

The irregularities came to light during a routine internal audit of the bank's gold loan portfolio. During this exercise, discrepancies were found in the pledged collateral across multiple branches. On further scrutiny, it was discovered that several ornaments deposited as security were not genuine gold but fake items.

The alleged fraud took place over a prolonged period between January 2023 and October 2025, indicating a well-organised operation.

Following the findings, a complaint was filed by Dhananjay Ramesh Thite, an employee at the bank's zonal office. Acting on the complaint, the Nagpur Police registered a case and initiated an investigation.

Officials are now examining how such a large-scale fraud went undetected for a long time and whether any internal controls were compromised.

In response to queries from GoodReturns, the bank stated that the matter is currently under investigation and further details will be shared at an appropriate time.

Fake Gold Ornaments Used to Avail Gold Loans in ICICI Bank

Preliminary investigation suggests that nearly 159 account holders managed to avail loans by pledging fake jewellery. These items, which should have been verified for purity and weight, were reportedly cleared during the valuation process.

Gold loans are usually granted after strict assessment of the pledged metal. In this case, the acceptance of counterfeit ornaments points to serious lapses in verification.

Investigators are also looking into whether any bank staff or authorised valuers were involved in the fraud. Officials noted that loans of such magnitude cannot be approved without proper validation, raising suspicion of possible collusion.

The role of those responsible for certifying the authenticity of the gold is now under detailed scrutiny.

ICICI Bank Gold Loan Scam Raises Big Questions Over Bank Checks and Customer Safety

The incident has raised broader concerns about due diligence and risk management in gold loan operations. Such loans are popular among customers due to quick disbursal and minimal documentation, making robust verification systems essential.

While banks generally follow standard procedures, this case highlights how gaps in implementation can be misused.

As the investigation progresses, authorities are expected to identify all individuals involved and assess the full scale of the fraud. Strict action is likely against those found guilty, including borrowers and any insiders.