CHENNAI: City Police's Central Crime Branch (CCB) have arrested two persons, including a gold appraiser, for causing a loss of Rs 2.38 crore to Canara Bank's Mint branch by procuring gold loans using imitation jewellery. The scheme was orchestrated by the branch manager, who is absconding.

The misappropriation came to light during an internal audit in April this year. The branch manager, Ramesh Mallukunda, left the bank during the audit and has been absconding since. Canara Bank authorities conducted an internal investigation and learnt that the branch manager had colluded with the appraiser who gave appraisal certificates for 21 bogus gold jewellery pledged in the bank between October 2024 and March 2025.

Probe by the Bank Fraud Investigation team revealed that the manager arranged for 'customers' to pledge the fake jewellery and issued gold loans against them.

After investigations, police have arrested the gold appraiser, Saravanan (42) of Chintadripet and Janakiraman (39), a resident of Saidapet, who pledged fake jewellery with the bank. Search is on for the absconding bank manager.

The arrested persons were produced before a magistrate and remanded in judicial custody.