Rs 1.15cr gold pledged with bank for loans goes ‘missing’; Gujarat HC issues notice to Centre, RBI, Indian Bank

AHMEDABAD: A couple from Rajkot has approached the Gujarat high court seeking directions to the Centre and the Reserve Bank of India (RBI) against Indian Bank, alleging that their gold ornaments worth Rs 1.15 crore pledged for two loans went missing from the bank's custody and that the bank failed to inform them. They further alleged that the bank continued to charge interest on the loans despite the missing gold.The petition was filed by Sangeeta Shah and Shyam Shah, who availed two MSME jewellery loans in 2023 from Indian Bank's Rajkot branch by pledging 1,004.1g of 22-carat jewellery, including gold ornaments and gemstones, with a market value of Rs 1.15 crore.The petitioners stated that the loans were renewed annually and that the bank would appraise the value of the pledged gold each time. However, when they sought renewal of the loans on Oct 28, 2025, the bank informed them the next day that it could not renew the loans as the pledged jewellery 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.The bank later informed the petitioners that the ornaments had been missing since March 2025 and that it had lodged a complaint with the police in July, though no FIR had been registered so far. The couple approached the high court after the bank allegedly threatened to classify the loan accounts as NPAs (non-performing assets), imposed penal charges, and their credit scores began to be affected.Appearing for the petitioners, advocate Nimit Shukla argued that the bank suppressed the information for several months while continuing to demand and accept interest payments, which amounted to a breach of its duty of care. The petitioners submitted that they made a representation on Nov 5, 2025, highlighting the bank's negligence and seeking reimbursement for the lost gold, making charges, and the value of the gemstones.The petition contended that the bank did not even provide a timeline for reimbursement and, despite admitting in writing that the gold was lost, resorted to coercive measures, amounting to an unjustified abuse of dominance. "The bank's deliberate suppression of information for several months and its failure to compensate the petitioners is in absolute disregard of the guidelines laid down by the RBI," the petition stated.The couple sought directions to the Centre and the RBI to take appropriate action against the bank and to direct it to compensate the petitioners in accordance with law, or alternatively, to constitute an independent vigilance committee to inquire into the matter. They also sought complete details of their loan accounts and internal inquiries, 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 Jan 27, when the matter will be heard further.