Settlements to the tune of Rs. 11 crore have been made towards remediation measures initiated by the Bank of Baroda in the bank heist case at Gurubarapalli branch here.
On Tuesday, after four days of marathon settlement, the remediation measures initiated by the bank inched to a close here with the settlement of 940 accounts out of the total 952 accounts. A total of 590 customers have been compensated for the loss of jewellery. The final 12 accounts held by a handful of customers will be cleared once the bank reopens after the holidays, presumably by Friday.
Speaking to The Hindu , Gopalrethinam, Senior Branch Manager, said the settlement was calculated on gold rates as of date, with the inclusion of wastage charge of 6 per cent. The bank had already waived interest claims of eight months from the date of crime in late January. Wherever outstanding interest was pending it has been adjusted towards the settlement.
The settlement towards the loss of jewellery commenced on Friday, after the police issued a temporary statement of non-recovery setting in motion the remediation processes.
The police statement enabled the bank to start the compensation process, eight months after the heist in January, when over 5,000 sovereigns of gold jewellery held in a safe were swiped clean by a gang.
The police had estimated the total loss at Rs. 5 crore.
Following the arrests of seven accused from different parts of the country, police had recovered close to Rs.1.5 crore by way of mixed assets including some cash, jewellery and immovable property and an SUV.
However, the actual liability incurred by the bank prior to making its insurance claims has far exceeded the valuation of loss by the police.
The heist, however, jolted the entire banking infrastructure and also the police, forcing a serious relook into the glaring lapses in basic infrastructure and security apparatus in bank branches, particularly those located in rural outposts.
Equally, a series of security guidelines were issued to all lending institutions, including private pawn shops and also ATMs across Western region.
