In a major crackdown on a rising trend of fake gold loan frauds, the Udupi district police have busted an inter-state racket and arrested five individuals accused of pledging counterfeit gold ornaments to secure loans from banks.
The investigation began after a bank branch manager filed a complaint on October 30, alleging that a group had pledged fake gold ornaments as genuine. Following the complaint, four cases were registered at the Shirva Police Station under Sections 316(2), 318(4), and 3(5) of the Bharatiya Nyaya Sanhita (BNS).
Multi-state operation leads to arrests
Taking note of the growing number of similar cases in the district, the police launched an operation led by Kaup Circle Inspector Ajmath Ali. Three special teams were formed and deployed across multiple states. The accused were traced and arrested from Bengaluru, Goa, Mumbai, and Delhi, officials confirmed.
Those arrested have been identified as:
- Puneeth Anand Kotian of Ambalpady
- Sudeep of Tenkanidiyur
- Ranjan Kumar of Kaup
- Sarvajeeth H.K. of Perdoor
- Rajesh Dilip Patel of Pune, Maharashtra
During the operation, police seized ₹4.3 lakh in cash, a laser machine used to forge hallmark symbols, and a computer used in the fabrication of the counterfeit ornaments.
Superintendent of Police Hariram Shankar said the accused were produced before the jurisdictional court and have been remanded to judicial custody.
Linked cases across Udupi district
Further investigation revealed that the same gang had allegedly carried out similar fraudulent activities in other parts of the district, including the Brahmavar, Hiriyadka, and Udupi Town police station limits. Additional cases have been registered in connection with these incidents.
The coordinated operation was supervised by Karkala ASP Dr Harsha Priyamvada, and police say efforts are ongoing to trace others linked to the racket.
Authorities have urged financial institutions to exercise caution when accepting gold pledges, especially when ornaments lack verified hallmarks.