Karnataka gang arrested for pledging fake gold ornaments to banks, cheating them of Rs 27 lakh
The Karnataka police have uncovered a large-scale fraud network that cheated nationalised banks and cooperative societies by pledging fake gold ornaments to secure loans worth lakhs of rupees. The Shivamogga police arrested two individuals on Sunday and are searching for three others in connection with the case.
The arrested accused have been identified as B J Lokesh, 39, and H Sudha, 35, both residents of Shivamogga district. The police have also launched a manhunt for S Y Ravishankar, a gold appraiser at Punjab National Bank; Rahul, 26; and Sharath, 35, who runs a jewellery store. According to Shivamogga Superintendent of Police Nikhil B, the gang operated for over a year and allegedly made Rs 27-28 lakh by pledging fake gold ornaments.
The modus operandi involved using gold-plated base metals that passed the acid test commonly conducted by banks. The gang targeted banks that relied solely on acid tests without further verification. The fake jewellery was crafted to mimic genuine gold in weight and appearance. Once the loan was sanctioned, the accused would default, leaving the bank with worthless ornaments.
The police are investigating whether the network has links to other similar frauds across the state. They have urged banks to adopt more rigorous testing methods, such as X-ray fluorescence or fire assay, to prevent such scams. The arrested accused have been remanded to judicial custody, and further investigations are ongoing.
