Pledged gold bangle lost, Manappuram Finance told to refund woman, pay Rs 55,000

4 min readNew DelhiJun 24, 2026 10:00 AM IST

The commission observed that consumers entrust family valuables to such institutions with the expectation that they will be protected from loss or damage. (AI-generated image)

A woman in Andhra Pradesh who pledged nearly 181 grams of family gold to secure an Rs 8.81 lakh loan from Manappuram Gold Finance has won a consumer case after a 6-gram gold baby bangle allegedly disappeared while the jewellery was in the company’s custody.

Holding the lender responsible for failing to safeguard the pledged ornaments,a bench of president Ch Raghupathy Vasantha Kumar and member Chaganti Nageswara Rao of the Kakinada District Consumer Disputes Redressal Commission has directed it to either return the missing bangle or pay its market value, and awarded Rs 50,000 in compensation and Rs 5,000 in litigation costs.

The commission was hearing an appeal arising from a complaint filed by the borrower, who claimed that one of the ornaments deposited as security for the gold loan was missing when the pledged jewellery was released after repayment of the loan.

Observing that institutions accepting gold as collateral are duty-bound to protect customers’ valuables, the commission held that the lender could not escape liability when it failed to account for the missing ornament.

181 grams of gold pledged

According to the complaint, the woman had pledged approximately 181 grams of gold jewellery with Manappuram Gold Finance to avail a loan of Rs 8.81 lakh. The ornaments included several family items, including a gold baby bangle weighing around 6 grams.

After clearing the loan dues and collecting the pledged jewellery, she allegedly discovered that the baby bangle was missing. She approached the company seeking an explanation and return of the ornament but failed to get satisfactory relief.

The woman subsequently moved the consumer commission, alleging negligence and deficiency in service on the part of the lender.

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Company disputed claim

Manappuram Gold Finance contested the complaint and denied wrongdoing. The company challenged the allegations and sought dismissal of the consumer’s claim.

However, after examining the records and evidence, the consumer forum found that the lender had failed to satisfactorily explain the disappearance of the ornament while it remained under its custody.

Lender has responsibility: Court

The commission noted that when borrowers pledge jewellery with a gold loan company, the institution assumes responsibility for preserving the ornaments and returning them intact after repayment.

It observed that consumers entrust family valuables to such institutions with the expectation that they will be protected from loss or damage. The lender, therefore, had a duty to account for every pledged item.

Finding a deficiency in service, the commission held the company liable for the missing bangle.

Final order

Allowing the complaint, the commission directed Manappuram Gold Finance to either return the missing 6-gram bangle or pay its prevailing market value. In addition, the lender was ordered to pay Rs 50,000 as compensation for the mental agony and inconvenience suffered by the complainant and Rs 5,000 towards litigation expenses.

Consumer takeaway

The ruling highlights that gold loan companies are custodians of pledged jewellery and can be held accountable if ornaments go missing while in their possession.

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For consumers, the decision reinforces that they can seek compensation not only for the value of lost jewellery but also for the distress and inconvenience caused by such lapses.

For consumer-related grievances, individuals may contact the consumer helpline in their respective states (Andhra Pradesh: 0866-2551431) or call the National Consumer Helpline at 1915 for assistance.

Vineet Upadhyay is an Assistant Editor with The Indian Express, where he leads specialized coverage of the Indian judicial system.

Expertise

Specialized Legal Authority: Vineet has spent the better part of his career analyzing the intricacies of the law. His expertise lies in "demystifying" judgments from the Supreme Court of India, various High Courts, and District Courts. His reporting covers a vast spectrum of legal issues, including:

Constitutional & Civil Rights: Reporting on landmark rulings regarding privacy, equality, and state accountability.

Criminal Justice & Enforcement: Detailed coverage of high-profile cases involving the Enforcement Directorate (ED), NIA, and POCSO matters.

Consumer Rights & Environmental Law: Authoritative pieces on medical negligence compensation, environmental protection (such as the "living person" status of rivers), and labor rights.

Over a Decade of Professional Experience: Prior to joining The Indian Express, he served as a Principal Correspondent/Legal Reporter for The Times of India and held significant roles at The New Indian Express. His tenure has seen him report from critical legal hubs, including Delhi and Uttarakhand. ... Read More

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