Police booked the two staff and were remanded before a local court.
A cashier and assistant cashier of the Pondicherry Cooperative Urban Bank here were arrested on Friday for allegedly committing fraud and stealing gold jewels pledged by the customers of the bank to raise loans, police said.
Police sources said one of the customers approached the bank situated in neighbouring Lawspet a few days ago to redeem the jewels he had pledged to raise gold loan. The customer allegedly found the jewels he had pledged were replaced with covering ornaments.
The shocked customer filed a complaint with the higher authorities of the bank. A thorough check of all the ornaments pledged by customers with the bank was launched.
Police said it was found that around four hundred sovereigns of ornaments were replaced by the duo-Ganesan (cashier) and Vijayakumar (assistant cashier) of the bank with covering ornaments.
Police said that the two employees had allegedly re-pledged the original ornaments of customers with a private pawn broker and raised the money.
The bank manager filed a complaint with the D Nagar police and swift action by the police resulted in the original ornaments worth Rs 1.19 crore being retrieved.
Police booked the two staff under Sections 407 (criminal breach of turst) 420 (cheating) and 380 (theft) of Indian Penal Code and arrested them Friday, They were remanded before a local court and were since lodged in prison here.
Further investigations were on, police said, adding a few more employees of the bank were under the scanner.
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