Court seeks police report on ‘return of fake gold’ by Muthoot Fincorp

A Delhi court has sought a probe report from police on a complaint accusing Muthoot Fincorp of returning fake gold to a customer after clearance of his loan.

Written by Express News Service | New Delhi | Published: March 30, 2012 1:33 am

A Delhi court has sought a probe report from police on a complaint accusing Muthoot Fincorp of returning fake gold to a customer after clearance of his loan.

Muthoot Fincorp,a non-banking financial firm,gives loans against gold.

“Let a report in this regard be called from the station house officer of the Desh Bandhu Gupta Road police station,” Chief Metropolitan Magistrate Vinod Yadav said.

The court was acting on a complaint filed against the firm and its top officials by Sachin Gupta,a West Delhi resident. Gupta told the court he had pledged a total of 252 grams of gold in coins of varying weight for a loan. He alleged that after repayment of the loan,he was handed his coins back in a sealed packet by a company sales executive.

Gupta alleged that later,in October 2011,when he wanted to sell the same coins,the proposed purchaser told him all his coins were fake — made up of iron with gold polish applied on them. He said he double-checked with a bank and they confirmed this.

Gupta approached the Muthoot Fincorp branch manager who allegedly denied involvement in the crime. Gupta told the court that till date,he had not recovered the genuine gold items he had pledged for the loan,and that police were not taking any action on his complaint.

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