Financial Scam / Odisha EOW Arrests Ex-Bank Manager in Gold Loan Scam

Bhubaneswar, Aug 31: Odisha’s Economic Offences Wing (EOW) has arrested Satyabrata Bhoi, former Branch Manager of Union Bank of India, Joda branch, in connection with a massive gold loan fraud case.

The arrest was made on August 30, 2026, in Bhubaneswar, and he was produced before the designated OPID Court in Balasore today.

The case, registered as EOW PS Case No.12, involves charges under multiple provisions of the Bharatiya Nyaya Sanhita (BNS) and Sections 66(C) and 66(D) of the IT Act. The complaint was filed by Ashutosh Sushil Kumar Pattnaik, Regional Head of Union Bank’s Baleshwar office.

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Investigations revealed that between June 2023 and June 2024, Bhoi, in collusion with other bank staff, fraudulently sanctioned and disbursed 100 gold loans worth ₹2.12 crore against fake and spurious ornaments.

These loans were approved without proper documentation, KYC verification, or signatures of genuine borrowers.

As Branch Manager since September 2022, Bhoi was responsible for evaluating pledged gold, verifying borrower eligibility, ensuring documentation, and maintaining custody registers.

However, the probe found that the Gold Pouch In-Out Register was not maintained, and mandatory checks were bypassed. Out of the 100 accounts, 23 have been closed, while 76 remain active with outstanding dues of ₹1.97 crore as of August 18, 2026.

Further inquiry revealed that loan amounts were initially credited to borrowers’ accounts but later diverted, without their knowledge or consent, to other accounts linked to Bhoi and his associates. This systematic transfer concealed the money trail and facilitated misappropriation of funds.

The EOW stated that the fraud caused significant financial losses to the bank and was executed through deliberate violation of rules and coordinated conspiracy. Searches at Bhoi’s residences are ongoing to trace disproportionate assets.