Rajkot Couple Moves HC Over Missing Gold in Bank Custody

Case Background

A high-stakes legal battle has reached the Gujarat High Court after a nationalised bank admitted that more than a kilogram of pledged gold jewellery has gone missing from its custody. Rajkot residents Sangeeta and Shyam Shah filed a petition through their counsel, Nimit Shukla, against the Union of India, Reserve Bank of India, and Indian Bank following the shocking revelation.

Loans and Collateral

The couple had availed two MSME Jewel Loans in 2023, pledging approximately 1,004 grams of 22‑carat gold jewellery valued at around ₹1.15 crore. Despite the collateral being in the bank’s possession, the petitioners continued to pay interest, amounting to ₹4.12 lakh between September 2024 and November 2025.

Discovery of Loss

The missing gold came to light in October 2025, when the Shahs sought to renew their loan accounts. In a written response dated October 29, the bank admitted that the “jewel pocket” was missing. Initially, the bank invited them to file a reimbursement claim, but according to the petitioners, no compensation has been provided to date.

Allegations Against the Bank

The petitioners allege that instead of resolving the matter, the bank threatened to classify their loan accounts as Non‑Performing Assets (NPA). They argue that this amounts to coercive recovery despite the bank’s failure to safeguard pledged collateral.

Reliefs Sought

The Shahs have urged the High Court to:

• Prevent coercive recovery steps by the bank.

• Direct the formation of an independent investigation committee to probe the disappearance of the gold.

• Ensure full compensation for the lost jewellery and the mental anguish suffered.

Wider Implications

The case raises serious questions about accountability in banking operations and the protection of customer assets, especially in collateral‑based lending. The High Court’s decision could set a precedent for how such disputes are handled in the future.