SBI issues gold loan notices despite ornaments being in court custody

Time of India

a day ago

1
2
Davanagere: SBI Nyamati branch issued repayment notices to approximately 200 gold loan customers, despite 17.1 kg of stolen gold ornaments remaining in court custody following a 2024 theft.
The theft incident, which occurred on Oct 26, affected 509 customers. While police apprehended six suspects and recovered the stolen items in March 2025, borrowers face uncertainty regarding loan repayment without access to their collateral.
Following the October 26, 2024, robbery at SBI's Nyamati location, where thieves took 17.7 kg of gold ornaments from the bank, authorities arrested six individuals on March 27 and recovered 17.1 kg.
Customers are experiencing difficulties as the bank requires loan settlement before releasing their jewellery.
Some customers are preparing to petition the Consumer Disputes Redressal Forum to reclaim their pledged items. A group of 163 affected individuals, operating under the name 'Gold Aspirants Group', has assembled documentation of their pledged items and loan particulars, while seeking legal advice.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Is it legal? How to get Internet without paying a subscription?
Techno Mag
Learn More
Undo
H Manjappa from Yeraganala village disclosed taking a Rs 3 lakh loan against 90 grams of gold ornaments. He indicated his willingness to settle the loan upon the return of his gold. Despite the bank's initial assurances of avoiding customer inconvenience, it has issued notices detailing account information and loan amounts. "How can we repay the loan without assurance of the jewellery's return?" he questioned.
"Not just me, more than 200 customers have reported receiving notices and pressure calls demanding loan repayment.
The notice indicates possible account deactivation and CIBIL score impact for non-payment, with warnings about all necessary steps being taken for loan recovery from the bank without our gold," another borrower, who pledged gold, said, expressing his dissatisfaction.
HS Prakash, another customer, revealed borrowing Rs 40,000 against two gold rings in Feb 2024. He paid Rs 45,000, including interest, as instructed.
"Despite paying the money set aside for monsoon sowing, I have not yet received my jewellery," he rued.
Ornaments identification is a challenge
Although police recovered and submitted the stolen jewellery to the court in March, SBI authorities haven't received these items even after three months. The bank faces significant challenges in identifying and distributing the recovered ornaments. Criminals concealed some portions of the loot in Karnataka and disposed of bundled items in a well in Tamil Nadu.
Despite recovery and court submission, customer identification records were lost.
The original storage system, with jewellery in labelled bags containing identification slips and loan details, was disrupted. Bank officials acknowledge difficulties in establishing legitimate ownership of recovered items.
Quote
The State Bank of India wishes to reassure its customers regarding their gold ornaments stored with us. We have discontinued sending notices, as it was merely a standard procedural requirement. Our customers need not be concerned about the previously issued bank notifications.
- Sunil Kumar Yadav, manager, SBI Nyamati branch