Kerala: Man arrested in Kannur for interest-free gold loan fraud

Police arrested a man on Friday in connection with an alleged fraud in which gold ornaments and cash were allegedly swindled from a homemaker under the guise of offering interest-free gold loans, Kannur City Police Commissioner Nidhin Raj said.

Firm owner arrested in loan fraud case

According to the police official, the fraud was allegedly carried out under the guise of an establishment located in a building near the Thalassery General Hospital. The arrested man, identified as Mohammed Shibil C. (39), of Thottummel, Vadakumbad, was one of the firm’s owners and the fourth accused in the case.

The victim, a Dharmadam native, was reportedly lured by the accused with an offer of a one-year, interest-free gold loan. She was promised that, upon repayment of the loan, she would be returned the same gold pledged, or a new ornament of equal weight, in a model of her choice. According to the police, the accused collected 62.300 grams of gold ornaments from the complainant for a loan of Rs. 2.5 lakh. They later obtained an additional Rs. 1.25 lakh from her, with the assurance that the pledged gold would be returned. However, neither the gold nor the money was returned, prompting the victim to approach the Dharmadam police.

Probe reveals Rs 3 crore scam, multiple cases

Another accused in the case, E. Prakasan, had already been arrested. The police said the accused were involved in a fraud of nearly Rs. 3 crore and faced around 30 similar charges.

Similar gold fraud case in Kozhikode

Earlier on Thursday, the Kerala Police arrested three individuals for allegedly cheating a man of Rs 9 lakh by luring him with a fake promise of selling pledged gold in Kozhikode district, officials said. (ANI)

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