Daijiworld Media Network - Mangaluru

Mangaluru, July 1: A shocking case of fraud has come to light involving the manager of the Shaktinagar Vyavasaya Seva Sahakari Sangha, who allegedly misused his position to siphon off 6.5 kg of gold ornaments pledged by customers. The accused then pawned the same gold at another cooperative society and availed a loan of Rs 3.5 crore.

The main accused has been identified as Preethesh, the manager of the cooperative society. Another person named Sheikh Mohammad, who assisted him in the fraudulent activity, has also been arrested. Police are on the lookout for two more individuals involved in the case.

Kankanady Town Police Station (File photo)

According to sources, the accused abused his authority and illegally removed the pledged gold from the society's locker. Through his associates, he then pledged the same ornaments at another cooperative society in Shaktinagar and took a loan of Rs 3.25 crore.

As word of the fraud began circulating within the society, Preethesh reportedly fled to Bengaluru and then escaped abroad. When the duped customers became aware of the fraud and began demanding accountability, a complaint was filed on June 17. The police subsequently issued a look-out notice against the accused.

Fearing arrest, Preethesh returned to Mangaluru from abroad and surrendered before the court through his legal counsel. The police at the Kankanady station, who have registered the case, are expected to take him into custody for further interrogation.

Fake gold seized

After availing the Rs 3.5 crore loan using the genuine ornaments, Preethesh allegedly hatched a plan to deceive the original customers by replacing the gold with fake ornaments of identical design. For this purpose, around 3.5 kg of rolled gold ornaments were crafted. These fake items have been seized by the police from Sheikh Mohammad.