Gujarat High Court Takes Up Plea for Transfer of Missing Gold Investigation
The Gujarat High Court has issued a formal notice to the state government in response to a petition that seeks the transfer of an ongoing investigation. This case involves a First Information Report (FIR) registered with the Rajkot police concerning gold ornaments valued at Rs 1.15 crore that went missing while in the custody of a bank.
Background of the High-Value Jewel Loan Case
The petitioners, Sangeeta Shah and Shyam Shah, had secured two Micro, Small and Medium Enterprise (MSME) jewel loan facilities in the year 2023 from the Rajkot branch of Indian Bank. To avail these loans, they pledged a substantial quantity of jewellery, totaling 1,004.1 grams of 22-carat gold ornaments and gemstones. The market value of this pledged jewellery was assessed at approximately Rs 1.15 crore.
In December 2025, after discovering that the jewellery was missing from the bank's custody, the couple lodged an official FIR at the Rajkot A-Division police station. This initiated a police investigation into the disappearance of the high-value assets.
Legal Proceedings and Bank Settlement
Subsequently, the couple approached the Gujarat High Court, seeking directions for the Reserve Bank of India to take action against Indian Bank for alleged negligence in safeguarding their pledged property. In a development last month, Indian Bank moved to settle the dispute by offering compensation of Rs 1.32 crore to the petitioners.
Despite this financial settlement, the petitioners have returned to the High Court, represented by advocate Nimit Shukla. Their current plea alleges that the Rajkot police have failed to conduct a proper and thorough investigation into the criminal aspect of the case. They are now seeking the transfer of the probe, preferably to a Special Investigation Team (SIT), to ensure a comprehensive investigation that identifies all parties responsible for the missing jewellery.
Alleged Procedural Lapses in the Investigation
The petitioners have highlighted significant concerns regarding the police investigation. They pointed to an affidavit filed by the police before the sessions court, which stated that one accused individual had allegedly handed over the keys to the bank's strong room to a peon. According to the petitioners, this action reflects serious procedural lapses in the protocols for safeguarding high-value pledged property.
The investigation has reportedly left several critical questions unanswered:
- Whether the handover of the strong room keys was authorized by bank officials.
- If the transfer was properly documented as per banking procedures.
- Whether the handover was supervised by responsible personnel.
- If the act constituted a violation of established banking security protocols.
Furthermore, the petitioners stated that the role of the peon who received the keys and the accountability of supervising officers, who may have permitted or ignored such conduct, have not been adequately examined by the investigating authorities.
Representation to Police and Court's Directive
In an effort to push for a more rigorous investigation, the petitioners submitted a detailed representation to the police on February 7, explicitly requesting a thorough probe into all aspects of the case. They claim that no substantial progress was made following this submission.
In response to the current petition, the Gujarat High Court has issued notices to the concerned authorities, including the state government, seeking their replies. The court has scheduled the next hearing in this matter for June 30, 2026.
This case underscores ongoing concerns about the security of high-value assets in banking custody and the efficacy of police investigations into such financial discrepancies. The High Court's intervention may set a precedent for how similar cases of alleged negligence and procedural failures are handled in the future.
