Ganesh, a cycle shop owner, had pledged 190 grams of jewels and taken Rs 3.10 lakh as loan from the bank sometime ago, police said.
After repaying the loan, the bank released the pledged jewellery, but it allegedly turned out to be fake.
The cycle shop owner then lodged a police complaint. As the news spread, other customers protested in front of the bank, following which the management assured them that their jewels were safe and there was no reason to get agitated.
Meanwhile, police began a search for the gold appraiser Karthik.