Mysuru: A jewellery shop owner has been taken into custody after allegedly collecting monthly instalments from more than 80 customers under a gold savings scheme and subsequently leaving the city, according to complaints received by Mysuru police.
The alleged fraud came to light at Mohan Jewellery near Vivekananda Circle after customers became concerned when the shop remained closed for about a week.
Customers invested after earlier schemes
Shop owner Mohan Lal had reportedly operated gold savings schemes on two previous occasions. During those schemes, customers allegedly paid monthly instalments and received gold as promised.
The successful completion of the earlier schemes reportedly helped the owner gain the confidence of customers.
Based on their previous experience, several customers are said to have invested larger amounts in the latest scheme, expecting to purchase gold through monthly instalments.
However, concerns began to grow when the jewellery shop remained shut for several days.
Owner allegedly left city
According to the complainants, Mohan Lal also vacated his residence and allegedly left the city without informing customers participating in the scheme.
More than 80 people are believed to have been affected, although the exact amount collected from them has not yet been established.
The customers subsequently approached Kuvempunagar police and lodged complaints against the jewellery shop owner.
Following the complaints, police reportedly traced Mohan Lal and took him into custody for questioning.
Police investigate financial transactions
Police are now investigating the operation of the gold savings scheme, including the number of customers who participated and the total amount allegedly collected.
Investigators are also examining financial transactions and other documents connected with the scheme. Statements from customers who claim to have suffered losses are expected to be recorded as part of the investigation.
Police are also looking into whether other individuals were involved in operating the scheme or in the alleged fraud.
Further action will be taken based on the findings of the investigation.
Fresh concerns over gold savings schemes
The case has raised fresh concerns over gold savings schemes operated by jewellery establishments, particularly when customers make regular payments over extended periods.
The development comes soon after the controversy surrounding the Chinnathambi gold cheating case in Mysuru, adding to concerns among customers about the risks associated with such schemes.
Gold savings schemes are often marketed as a way for customers to accumulate money towards a future jewellery purchase. However, police and authorities have previously stressed the importance of checking the terms, credibility and financial practices of establishments before making substantial payments.
The investigation into the latest Mysuru case will determine the extent of the alleged financial loss and whether any further arrests or legal action are warranted.