Gold Appraiser In Fake 73g Mangalya Chain Loan Case Gets Anticipatory Bail; Karnataka HC Says Prosecution Must Prove Collusion

The petitioner, accused No. 2, was an authorized gold appraiser for ICICI Bank.

Accused No. 1 obtained a gold loan of ₹3,55,800 by pledging a 73-gram Mangalya Sara, which a later audit allegedly found to be fake.

The complaint alleged that the loan was sanctioned on the basis of the petitioner’s appraisal statement, and Haliyal Police registered Crime No. 179/2026 for offences under Sections 318(4), 316(2) and 61(2), read with Section 3(5), of the Bharatiya Nyaya Sanhita, 2023.

After the Sessions Court dismissed his anticipatory-bail application, the petitioner sought relief from the High Court under Section 482 of the Bharatiya Nagarik Suraksha Sanhita, 2023.

Section 482 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (corresponding to Section 438 of the Code of Criminal Procedure) empowers the Court to grant anticipatory bail.

In deciding bail, the Court considers, among other matters, the nature and gravity of the offence, the circumstances in which it was committed, the accused’s position and antecedents, the risk of absconding or reoffending, and the possibility of witness-tampering; the Court need not conduct a mini-trial or assess the prosecution case conclusively at the bail stage.

The alleged offences were not punishable with death or imprisonment for life.

The Court noted that accused No. 1 was the principal borrower and that the allegation against the petitioner was that the loan had been sanctioned on the basis of his appraisal.

Whether the petitioner colluded with the borrower and knowingly passed off fake or gold-plated ornaments as genuine remained for the prosecution to establish; the Court did not determine that question at the bail stage.

In light of the petitioner’s lack of prior criminal incidents, permanent residence, willingness to cooperate, and the fact that the alleged offences were not punishable with death or life imprisonment, the Court found no sufficient basis at that stage to treat him as guilty and considered conditional release appropriate.

Conditions included executing a personal bond of ₹2,00,000 with one surety for the like sum, surrendering to the Investigating Officer within 15 days, attending the police station on the first Sunday of each month for up to six months or until the final report, whichever occurred earlier, cooperating with the investigation, and refraining from threatening the complainant or tampering with witnesses.

Breach of the conditions could be grounds to seek cancellation of bail.