A Rajkot-based couple has moved the Gujarat High Court seeking directions to the Centre and the Reserve Bank of India against Indian Bank, alleging that gold ornaments worth Rs 1.15 crore pledged for loans went missing from the bank’s custody.
According to a news report, they further alleged that they were kept in the dark and continued to pay interest.
The petition alleges serious lapses on the part of the bank, including failure to disclose the loss of the pledged jewellery for months and initiating coercive recovery measures despite admitting the loss in writing.
The petitioners, Sangeeta Shah and Shyam Shah, reportedly claimed that they availed two MSME jewel loan facilities in 2023 from Indian Bank’s Rajkot branch by pledging 1004.1 grams of 22-carat jewellery comprising gold ornaments and gemstones. The market value of the jewels is over rupees one crore.
They submitted that the loans were renewed annually and that the bank used to appraise the pledged gold each time. When they approached the bank in October, seeking renewal, they were informed the following day that renewal was not possible as the jewel pocket kept on pledge was missing.
The bank asked them to submit a reimbursement claim, quoting a reference rate of Rs 10,813 per gram for 24-carat gold.
According to the petition, the bank reportedly informed the couple that the ornaments had gone missing in March 2025, and that a police complaint was filed in July.
The report mentions that no FIR had been registered.
The couple approached the high court after the bank allegedly threatened to classify their loan accounts as non-performing assets, imposed penal charges, and their credit score started getting affected.
Their counsel, Nimit Shukla, submitted that the bank suppressed information about the missing gold for several months and continued to demand and accept interest payments during this period, which amounted to a breach of its duty of care.
The petitioners pointed out that they made a detailed representation in November last year, alleging negligence and seeking reimbursement of the lost gold along with making charges and the value of the gemstones.
However, the bank allegedly failed to provide any timeline for reimbursement.
The petition further contended that despite admitting in writing that the gold was lost, the bank resorted to coercive steps against the petitioners, which was described as unjustified.
It was stated that the bank’s deliberate suppression of information and failure to compensate the petitioners showed complete disregard for the guidelines laid down by the RBI.
The couple has sought directions to the Centre and the RBI to take necessary action against Indian Bank and to direct the bank to appropriately compensate them in accordance with law.
The report adds that they have sought the constitution of an independent vigilance committee to take action against the bank.
They have also asked for complete details of their loan accounts and internal enquiries, and directions restraining the bank from taking any coercive steps in relation to the loan accounts.
After a preliminary hearing, Justice Aniruddha Mayee issued notice to the Centre, the RBI and Indian Bank, seeking their replies by January 27, when the matter has been posted for further hearing.
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