Pain, fear, and despair permeated the air outside the Bank of Baroda branch in Jangareddygudem as anxious customers, including women, gathered seeking information regarding their missing pledged gold ornaments. Armed with loan documents, passbooks, and pledge receipts, the crowd—grappling with uncertainty yet clinging to a sliver of hope—awaited clarification from bank officials regarding the status of the jewellery that had been entrusted to the bank in exchange for financial loans.

For many gathered, the gold meant more than just a financial asset; it was a family heirloom, a gift, or a blessing from parents or family — the only form of savings to sustain them in their time of need. While feeling dejected and wiping away tears, many recounted why they had to pledge the gold in exchange for a loan to raise money for cultivation, purchase seeds and fertilizers, meet irrigation expenses, or cope with medical emergencies and financial hardships.

Among those gathered was Dhana Lakshmi, the wife of Krishna Reddy, who was battling guilt and a sense of failure because she had pledged her daughter’s gold chain, which had been entrusted to her during the Covid-19 pandemic to help with mounting medical expenses. She explained that her daughter had given her the chain after her marriage. Dhana Lakshmi pledged it with the belief that it would remain safe with the bank until the loan was repaid.

She claimed that the family had regularly paid interest and renewed the loan whenever necessary, hoping to redeem the ornament once their finances improved. To her shock, she found that the chain was reportedly missing, leaving her devastated. “How can I face my daughter? How can I return her gold chain?” she asked, struggling to hold back tears. “She trusted me with her jewellery during our difficult times. We pledged it only because we had no other option during the COVID crisis,” she added.

Her story resonated with many others, as several lamented that they too had pledged jewellery belonging to daughters, daughters-in-law, and relatives to overcome financial difficulties. The missing ornaments represented not only a financial loss but also the burden of explaining why the treasured family possessions could not be returned.

‘Scam’ unearthed

The alleged gold loan scam, which many believe would have remained hidden for years if not for Gavara Lakshmaiah, a small farmer cultivating paddy on his one-and-a-half-acre plot, came to light during his visit to the branch office on June 6 to settle his dues and reclaim his family’s jewellery. His visit effectively opened a Pandora’s box, exposing what customers now fear to be one of the most distressing breaches of trust they have experienced.

Lakshmaiah had pledged gold ornaments weighing eight kasu and availed himself of a loan of approximately ₹3 lakh. He stated that despite facing financial difficulties, he had diligently repaid the loan in instalments. What should have been a moment of relief soon turned into a nightmare when, during verification, he was reportedly informed that one of the pledged gold chains was missing. Shocked, he repeatedly sought clarification from the bank officials but received no satisfactory explanation.

“I had paid the instalments regularly and came prepared to clear the remaining dues and take back my gold. Instead, I was told that one of the chains was missing,” he said. Even more disturbing was the possibility that the jewellery entrusted to the bank’s custody had disappeared without explanation.

As word of Lakshmaiah’s ordeal spread across the town, panic set in. Borrowers rushed to verify the status of their own jewellery. The news spread rapidly across villages in the Jangareddygudem region as people contacted relatives and neighbours who had also taken out gold loans from the branch.

Within days, dozens of customers approached the bank seeking confirmation about their pledged ornaments. What initially appeared to be an isolated case soon evolved into a full-blown crisis. The panic was not only financial but deeply emotional, as each missing ornament carried stories of trust and tradition.

Like for R. Bhavani, who stood outside the bank with tearful eyes clutching her loan documents, it was her mangalsutra—a sacred symbol of marriage in Hindu tradition—that was now missing. She said that, like thousands of other rural women, she had entrusted the ornament to the bank, believing it would remain safe until she was able to redeem it. The jewellery, she said, carried memories of family bonds, years of shared struggles, and personal sacrifices. “For us, it is not just gold; it is our sentiment and our family’s honour,” she said.

As emotions ran high, the need for organised resistance grew stronger, and leading the crusade in the fight for justice is Satti Reddy, a farmer who has emerged as the key voice mobilising customers and coordinating protests. “People pledged their valuables because they trusted the bank. We believed our gold would remain safe until we repaid our loans and reclaimed it,” he said.

Recalling his ordeal, Satti Reddy said that he had taken out a loan of approximately ₹3 lakh by pledging ornaments weighing about 12 kasulu, including traditional gold bangles. He claimed that the value of the pledged jewellery was far higher than the loan amount. “I needed only ₹3 lakh at that time, even though I pledged gold worth much more. Like most farmers, I never imagined there would be any risk because the ornaments were in the bank’s custody,” he said.

However, when he approached the bank to redeem his jewellery, he allegedly found that only gold corresponding to the loan amount was available while the remaining ornaments were missing. “When I went to settle the loan, only gold equivalent to the value of the loan amount was available. The remaining ornaments had disappeared,” he alleged.

His experience became a rallying point for many affected customers who claimed that they, too, had pledged jewellery whose value exceeded the loans sanctioned. While banks generally lend only a portion of a gold ornament’s market value, customers expect the entire quantity deposited with the bank to be returned after repayment.

As reports of missing ornaments multiplied, Satti Reddy began contacting other borrowers and encouraged them to verify their records. What started as isolated complaints gradually evolved into a collective movement demanding a comprehensive investigation, the recovery of missing gold, and action against those responsible. “The issue is not just about money,” he said, adding that it is about trust. “If people cannot trust a bank with their jewellery, where else can they go in times of need?” he questioned.

Quest for truth

Moreover, the customers alleged that the bank was unaware of the scale of the problem until borrowers started assembling in large numbers to demand answers. While borrowers insist that the alleged scam came to light only after they discovered discrepancies and began protesting, senior Bank of Baroda officials present a different version. They maintain that internal vigilance mechanisms had already detected irregularities.

According to bank officials, a preventive vigilance audit had already been initiated well before customers began gathering at the branch. During the audit, discrepancies were reportedly identified and communicated to higher authorities. “The audit team noticed that something was amiss and reported the matter to headquarters,” a senior official said.

The bank maintained that information about the suspected irregularities spread among customers before verification could be completed, prompting widespread concern and protests.

The exact scale of the alleged loss, however, remains unclear. Bank officials have declined to disclose details of the ongoing audit or provide estimates regarding the quantity of gold that is allegedly missing.

Sources familiar with branch operations said that the Bank of Baroda branch manages a loan portfolio of around ₹100 crore, of which gold loans account for approximately ₹60 crore to ₹70 crore. A substantial portion comprises agricultural gold loans availed by farmers for cultivation, medical emergencies, and household expenses.

Despite the lack of official numbers and confirmation, farmer leaders and victims have attempted to estimate the extent of the damage. Andhra Pradesh Rythu Sangham district secretary K. Srinivas, along with Satti Reddy and Krishna Reddy, estimated that more than 2,700 customers have pledged ornaments with the branch.

Based on complaints received and preliminary assessments, they suspect that more than four kilograms of gold may be unaccounted for. “These are only preliminary estimates based on information shared by customers so far,” said K. Srinivas. “The actual figures can be known only after a comprehensive verification of every gold packet and every customer’s records.”

The absence of official figures has fueled speculation and heightened anxiety among borrowers. Until audit findings are made public and a complete inventory is verified, the true extent of the alleged fraud is likely to remain contested.

System failure or simple oversight?

One question that continues to haunt customers is how such discrepancies could occur in a system designed with multiple layers of checks and balances. Gold loans are generally governed by a structured process involving valuation by authorised appraisers, verification by bank officials, documentation, secure storage, periodic audits, and supervisory oversight. Yet, preliminary findings and customer complaints suggest that several safeguards may have been bypassed or compromised.

Sources familiar with the inquiry said that the investigators found instances where mandatory branch manager signatures were absent from documents related to gold loan accounts. Such omissions have raised questions about whether established procedures were consistently followed.

At the centre of the allegations is the role of the gold appraiser, who is accused of manipulating records while retaining the trust of customers. According to the victims, the appraiser recorded accurate details of pledged ornaments on the receipts issued to customers. However, when branch records were compared with customer receipts during verification, discrepancies allegedly emerged.

In some cases, customers claimed that the quantity of gold recorded in internal records was lower than the quantity actually pledged. In others, the number of jewellery items shown in official records was allegedly fewer than what customers had deposited.

“The receipt given to the customer showed one thing, while the records reportedly reflected something else,” said one victim, adding “How could an ordinary farmer detect such manipulation when we trusted the documents issued by the bank?”

The customers are now demanding a thorough investigation into whether the irregularities were the work of a single individual or reflected wider failures in oversight. Farmer leaders argue that the scale of the alleged fraud makes it difficult to believe that no warning signs emerged earlier. They have urged investigating agencies to examine the roles of all individuals involved in processing, verifying, and supervising gold loan accounts.

At present, no official findings have been released regarding the involvement of any bank employees beyond the allegations under examination. Bank authorities maintain that the verification process is still under way.

As protests intensified, the bank constituted five teams comprising five assayers and ten officials to verify documents and pledged ornaments. The teams submitted reports to higher authorities. Even though the victims alleged that the verification was not carried through to its logical conclusion, claiming that not all accounts and gold packets were examined, bank officials maintained that the verification exercise was completed and the report was submitted.

According to sources, compensation would be determined in accordance with the Reserve Bank of India (RBI) guidelines, taking into account the value of gold as on June 1, 2026, when the issue surfaced. Customers may be offered either replacement gold or monetary compensation for any confirmed losses. But for many customers, however, the issue is not merely about compensation.

‘False’ security

Amid protests and demands for accountability, Bank of Baroda has reassured customers that their interests remain its foremost priority. In a statement, Bank of Baroda Deputy General Manager and Regional Head S.K. Kiran Reddy said, “The bank was committed to transparency and was conducting verification of all gold loan packets in the physical presence of customers. Qualified jewel appraisers and additional personnel have been deployed to ensure that the process is completed carefully and accurately.”

Bank of Baroda firmly assures every affected customer that no grievance will go unaddressed. All concerns will be resolved in full compliance with regulatory guidelines and with the care they deserve, he stated.

But for families gathered outside the bank, the issue is much more than missing gold. It is about the erosion of trust in an institution they believed would safeguard their most precious possessions. Even as auditors continue to verify thousands of gold loan packets and investigators piece together what may have transpired inside the branch, customers remain caught between hope and uncertainty.