Two arrested for running fraudulent gold loan scheme; gold worth ₹1.8 crore seized

Bengaluru

The Central Crime Branch (CCB) Economic Offences Wing arrested two persons for allegedly running a fraudulent ‘0% interest gold loan’ scheme in the city.

According to the police, the accused, identified as Salaam and Ajith, had opened a jewellery shop in Vidyaranyapura and lured customers by offering gold loans at 0% interest. Believing the offer, several people pledged their ornaments but received only 50% to 60 % of the actual value. They were also told not to redeem their jewellery for at least 11 months.

During that period, the accused allegedly sold the pledged gold to another jewellery shop in HRBR Layout, making a profit of 40% to 50%. The accused later shut down the shop and went absconding after allegedly misappropriating around 4 kg of gold, the police said.

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

Preliminary investigations have revealed that the accused were involved in similar fraudulent activities in Mangaluru district and in Kerala.

Public advisory

City Police Commissioner Seemant Kumar Singh advised people to be careful while dealing with gold loan firms. Before pledging gold, the public is advised to verify the authenticity and license of the financial institution. “Do not fall prey to deceptive schemes such as ‘0% interest loans’. If any suspicious or fraudulent schemes are noticed, please inform the nearest police station or CCB Economic Offences Wing immediately,” he said.