KPHB gold fraud by manager surfaces
HYDERABAD: A large-scale fraud has surfaced in KPHB Colony under the jurisdiction of KPHB police station in Hyderabad. Muthoot Finance manager Priyanka Reddy allegedly diverted customers’ pledged gold and misappropriated funds worth crores.
Customers questioned Priyanka Reddy after she failed to return pledged gold ornaments despite repayment of loans. Her inconsistent responses led to the exposure of the fraud. Victims lodged a complaint at the KPHB police station, following which police registered a case and began an investigation.
Lower interest promise used to mislead customers
According to police, Priyanka Reddy, a resident of Kavadiguda, worked as a manager at Muthoot Finance in KPHB Sixth Phase. The company offers loans against gold at ₹1.40 interest. However, she allegedly convinced customers to opt for loans at ₹0.50 interest, misleading them.
The interest collected was deposited into her personal account instead of the company’s. She also initiated another fraud by obtaining one-time passwords (OTPs) from customers on the pretext of providing top-up loans and diverted the sanctioned amounts to her account.
Parallel finance firm used to pledge customer gold
Police said she, along with colleagues, started another finance firm nearby. Without customers’ knowledge, gold ornaments pledged at Muthoot Finance were reportedly redeposited in this firm and further used to secure loans from other institutions at higher interest rates.
The fraud came to light when an elderly customer visited the branch on Thursday to retrieve his gold after repaying the loan. The ornaments were not returned, prompting him to question the manager. Other customers also raised concerns and realised they had been cheated.
Based on complaints, police launched an investigation. Station House Officer Rajasekhar Reddy said an audit would reveal the extent of the fraud.
