New Delhi, Sept. 2 -- A Karnataka consumer commission has ruled that a bank cannot limit compensation to the net gold value when jewellery pledged as security for a gold loan is stolen while in the bank's custody. The lender must also account for making charges and the value of stones in the jewellery, the commission held.

The ruling came in a dispute involving Canara Bank's Bukkapattana branch in Tumkur district, where gold jewellery pledged by a borrower for two gold loans was stolen in a robbery. The Karnataka State Disputes Redressal Commission dismissed the bank's appeal and confirmed an order directing it to pay an additional Rs.88,362, along with 9% interest, Rs.30,000 as compensation and Rs.10,000 towards litigation expenses.

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