Daijiworld Media Network - Bengaluru

Bengaluru, Nov 5: The economic offences wing of the Central Crime Branch (CCB) has arrested two men involved in a multi-state gold loan scam, having previously carried out similar fraudulent activities in Dakshina Kannada district and Kerala.

The accused, identified as Salaam and Ajith, had opened a jewellery shop in Vidyaranyapura in Bengaluru, advertising 0% interest on gold loans to attract the public. Believing the advertisements, many customers pledged their gold ornaments and took loans.

“When the victims pledged their ornaments, they were given only 50–60% of the actual value of the pledged gold and were told not to redeem their jewellery for at least 11 months. During this period, the accused illegally sold the pledged gold to another jewellery shop in HRBR Layout, earning a profit of 40–50%. Under this scheme, around 4 kg of gold was misappropriated. After 11 months, the accused closed the shop and absconded,” said an officer.

The duo fled with gold and silver ornaments worth around Rs 1.8 crore. Authorities recovered 1.4 kg of gold ornaments and 5 kg of silver from them.

Two weeks ago, the main accused was arrested from his residence in Peenya. Preliminary investigations suggest that the accused were operating similar scams in other regions, extending their fraudulent activities beyond Bengaluru.