Daijiworld Media Network - Kasargod
Kasargod, Oct 10: An organised gang has been defrauding cooperative banks in Kasargod for nearly a year, allegedly swindling lacs of rupees by pawning fake gold-filled bangles.
According to bank officials and police, the bangles, which weigh around 8 grams each, contain only 2 to 3 grams of real gold, making them difficult to distinguish from genuine gold jewelry through traditional appraisal methods.
"We have registered 13 cases and arrested six persons till now," said Kanhagad Deputy Superintendent of Police (DySP) Babu Peringeth. The primary suspect, Mohammed Raees, is believed to have orchestrated the scheme by distributing the fake bangles to head-load workers and auto drivers, offering them a commission to pawn the items. Police suspect he may have fled to the Middle East.
The fraudulent activities came to light following complaints from multiple branches of the Hosdurg Service Cooperative Banks, as well as the Nileshwar Service Cooperative Bank and others. In total, the gang pawned approximately 50 gold-filled bangles weighing around 400 grams, defrauding the banks of Rs 18 lacs.
Investigators indicated that some banks may have struck deals with the accused to recover their losses, inadvertently alerting the suspects and allowing them to destroy evidence.
On September 21, a breakthrough occurred when Rajesh K from Pettikundu entered the Thimiri Service Cooperative Bank to pawn four bangles weighing 32 grams. "He wanted a loan of Rs 2 lac. But the moment our appraiser took the bangles in his hand, he realised it was fake," said bank manager Lankkesh O P.
After Rajesh revealed he had bought the bangles from Asharaf A P K, both men were detained and handed over to the Cheemeni police.
The investigation quickly uncovered a broader scheme. On September 23, it was discovered that Rajesh K had previously taken a loan of Rs 1.99 lac by pledging five gold-filled bangles at the Cheemeni Service Cooperative Bank. Similarly, Asharaf secured a loan of Rs 2.69 lac by pledging seven bangles at the Kodakkad Service Cooperative Bank.
In light of these findings, the Department of Cooperation ordered an audit of the gold jewelry pledged with cooperative societies and banks.
The first reported incident occurred in November 2023, when Mohammed Raees took a loan of Rs 2.77 lac by pawning five gold-filled bangles at the Hosdurg Cooperative Bank. Inspector Ajith Kumar P noted, "We arrested K Babu, a loading worker from Kanhangad, who took a loan of Rs 69,000 by pledging two bangles. He told us that Raees gave him the two bangles to pawn for a commission of Rs 5,000."
Although the charges against Babu were minor, the inspector decided to hold him for further questioning due to the scale of the scam.
As the investigation unfolded, it was revealed that the gang targeted banks with quick and easy gold loan procedures. Rajesh P, a goods auto driver, also fell into the scam, taking loans totaling Rs 2.84 lac from the Nileshwar Service Cooperative Bank by pledging fake bangles. "The bangles had purity marks and were difficult for our appraisers to detect as fakes," noted market branch manager V V Vinod.
To combat future fraud, banks are investing in advanced gold analysers that utilise non-destructive techniques, such as X-ray fluorescence, to assess the metal content of jewelry without damage. "It's expensive, but with fraudsters coming up with new ways, we need to stay one step ahead," said Rakesh K R, another branch manager.
However, DySP Babu Peringeth indicated that bank officials may also face scrutiny. "I told them that the managers and the appraisers are not off the hook," he stated. "These banks are paying appraisers to spot these types of frauds, yet they still rely on rubbing the jewelry on stones for verification."
A special investigation team is being formed to delve deeper into the growing concerns surrounding this elaborate scam.