Gold Loan Fraud Exposed: Suspect Nabbed in Kannur

A man was arrested for allegedly swindling gold and cash from a homemaker in Kannur under the pretense of interest-free gold loans. The scam involved a promise of returning the pledged gold, which was unfulfilled. Multiple similar fraud charges have been reported with the police investigation ongoing.

In a significant breakthrough, Kannur City Police apprehended a suspect on Friday, accused of masterminding a fraudulent scheme involving gold ornaments and cash. Under the guise of interest-free gold loans, victims were allegedly defrauded by an establishment situated near Thalassery General Hospital, according to Police Commissioner Nidhin Raj.

The suspect, Mohammed Shibil C., aged 39 and a resident of Thottummel, Vadakumbad, is reportedly one of the proprietors and the fourth individual implicated in the case. The victim, hailing from Dharmadam, was enticed with a seemingly attractive offer of a one-year interest-free gold loan, promising the return of the pledged gold or a new ornament of equivalent weight upon loan clearance.

Authorities revealed that the accused obtained 62.300 grams of gold ornaments and Rs. 2.5 lakh from the complainant, followed by an additional Rs. 1.25 lakh, under the pretense of returning the gold. However, neither the gold nor the money was restituted, prompting police intervention. The incident is part of a broader fraud case involving nearly Rs. 3 crore, reputed to encompass around 30 similar offenses. Previously, another suspect, E. Prakasan, was taken into custody. Meanwhile, the Kerala Police also cracked a separate fraud case in Kozhikode, involving Rs. 9 lakh.

(With inputs from agencies.)