Bengaluru Gold Loan Scam Unfolded: Two Arrests and Crores Seized

Bengaluru police arrested two men implicated in a fraudulent 'zero per cent interest gold loan' scheme. Operating from a jewellery shop, they convinced customers to pledge gold by offering misleading loans. They then illicitly sold the gold, netting significant profits, before absconding.

Two men orchestrating a 'zero per cent interest gold loan' fraud have been apprehended by Bengaluru police, recovering gold and silver worth Rs 1.8 crore, authorities revealed on Tuesday.

Central Crime Branch officials identified the primary suspect, who launched a jewellery store in Vidyaranapura, luring unsuspecting customers with false promises of interest-free loans. Victims received only 50-60% of their pledged gold's value, ultimately losing access to their valuables.

Police uncovered that the men unscrupulously sold the pledged gold to another jeweller, securing a 40-50% profit. The scam involved around four kilograms of gold. The primary culprit was recently arrested from his Peenya residence, and further inquiries are ongoing.

In response, authorities seized 1.478 gm of gold and five kilograms of silver from the implicated HRBR Layout jewellery shop. The total haul was estimated at Rs 1.8 crore.

As investigations extend to Mangaluru and Kerala, Bengaluru City Police urge the public to authenticate lending institutions before making pledges, warning against deceptive loan schemes.

(With inputs from agencies.)