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Odisha police advise NBFCs to exercise caution while granting gold loan


Reported by Santosh Jagdev
Bhubaneswar, Oct 18:

Twin City Commissioner of Police (CP) Dr RP Sharma today advised the representatives of the non-banking financial companies (NBFCs) operating in Odisha’s capital city to properly enquire about source of gold while releasing loans against the precious metal.

CP interacting with representatives of non-banking financial organisations (3)The Commissionerate Police today conducted an interaction programme with the NBFC officials after the police found criminals use NBFCs as safe havens for mortgaging stolen gold jewelleries and converting transforming their stolen ornaments into cash.

On September 21 an accused person, Balaram Martha, had purchased gold weighing 450 gm worth Rs 14.63 lakh from HM Jewellers located at Master Canteen of the city by depositing three blank cheques and on the next day went to India Infoline Finance Limited (IIFL), a NBFC, located in Lewis Road here to get gold loan. He successfully got a loan of Rs 8.60 lakh.

On October 15 Martha was nabbed by the police from Nayagarh district on charges of cheating, under section 420 of the IPC.

Similarly, another accused had stolen gold jewellery from Lalchand Jewellery showroom here and mortgaged it in an NBFC in the city.

During the interaction, the representatives of the NBFCs explained their procedures while awarding gold loans to their customers.

After listening to them, Dr Sharma termed the procedure weak and asked the NBFC officials to strengthen the procedure by verifying the source of the yellow metal while negotiating gold loans with customers.

The CP advised the officials to take measures to check these practices in order to lessen this type of crime.

“Take some standard measures to keep the thieves and looters away from your office,” said Dr Sharma.

More than 30 representatives of the NBFCs including Muthoot Finance, IIFL, Mannapuram gold loan and Cholamandalam Finance attended the interaction.