Two arrested for working fraudulent gold mortgage scheme; gold price 1.8 crore seized

The Central Crime Branch (CCB) Economic Offences Wing arrested two individuals for allegedly working a fraudulent ‘0% curiosity gold mortgage’ scheme within the metropolis.

According to the police, the accused, recognized as Salaam and Ajith, had opened a jewelry store in Vidyaranyapura and lured clients by providing gold loans at 0% curiosity. Believing the provide, a number of folks pledged their ornaments however obtained solely 50% to 60 % of the particular worth. They had been additionally advised to not redeem their jewelry for at the least 11 months.

During that interval, the accused allegedly bought the pledged gold to a different jewelry store in HRBR Layout, making a revenue of 40% to 50%. The accused later shut down the store and went absconding after allegedly misappropriating round 4 kg of gold, the police stated.

The CCB traced and arrested the principle accused from his residence in Peenya. From the HRBR Layout store, officers seized 1.47 kg of gold ornaments and 5 kg of silver objects, collectively valued at about ₹1.8 crore.

Preliminary investigations have revealed that the accused had been concerned in related fraudulent actions in Mangaluru district and in Kerala.

Public advisory

City Police Commissioner Seemant Kumar Singh suggested folks to watch out whereas coping with gold mortgage corporations. Before pledging gold, the general public is suggested to confirm the authenticity and license of the monetary establishment. “Do not fall prey to misleading schemes corresponding to ‘0% curiosity loans’. If any suspicious or fraudulent schemes are observed, please inform the closest police station or CCB Economic Offences Wing instantly,” he stated.