Nashik: The Nashik Police have arrested the director of Bafna Jewellers for allegedly cheating TJSB Co-operative Bank of nearly Rs 38 crore by submitting forged documents showing non-existent gold, silver and diamond jewellery as pledged stock to secure higher loans.
The accused, Nilesh Bafna, director of Bafna Jewellers at Tilakwadi Chowk, was arrested after a case was registered against six persons. A court has remanded him to police custody till June 26. The case has now been transferred to the Economic Offences Wing (EOW) for further investigation.
According to the police, Bafna had initially availed a cash credit loan of Rs 90 lakh from TJSB Bank in 1998. As the loan was repaid regularly in the initial years, the bank gradually increased the firm's credit limit. Over the years, the cash credit facility reportedly rose to Rs 44 crore and was secured against 14 properties belonging to the directors and guarantors.
Police said the firm allegedly stopped making regular interest payments from March 2025. Despite repeated notices from the bank, the dues remained unpaid, following which the loan account was classified as a Non-Performing Asset (NPA).
During the loan period, the firm allegedly submitted stock statements claiming it possessed gold, silver and diamond jewellery worth Rs 59.07 crore. Based on these declarations, the firm also sought additional credit facilities from the bank.
After obtaining an order from the District Magistrate, bank officials, accompanied by police, opened the jewellery shop and conducted a physical verification of the pledged assets. They found only silver worth around Rs 25.19 lakh at the premises. No gold or diamond jewellery matching the declared stock was found, exposing the alleged fraud.
Based on a complaint lodged by a bank official, the Sarkarwada Police registered a case against Nilesh Subhash Bafna, Subhash Lakhichand Bafna, Namrata Nilesh Bafna, Prabhavati Subhash Bafna, Sarla Parasmal Bafna and guarantor Kantilal Lakhichand Bafna under relevant provisions of law.
Police suspect forged stock statements were used over several years to obtain loan facilities from the bank. Further investigation is underway to ascertain the full extent of the alleged fraud and the involvement of the remaining accused.
(With inputs from agencies.)
