Fake gold hallmarking racket busted in Nagarathpet

The next you time you buy gold bars or coins, make sure to check that the hallmark is genuine, for fraudsters are now faking even this mark of purity.

The Central Crime Branch (CCB) said it recently arrested four teenagers who were selling gold bars with fake hallmarks. The hallmarking is done by the Bureau of Indian Standards (BIS) and is the benchmark for the standard of gold purity.

The arrests were made after the CCB raided the fourth floor of a building in Nagarathpet, central Bengaluru, on Friday. While the CCB arrested Gaurav, 19, Nikhil, Sumeer and Gaurav, all 18, the shop owner and another suspect are absconding. The CCB said it had seized 1.47 kg of gold and Rs 98,340 in cash from them.

The gang wasn't just faking the hallmark but was also running the jewellery business illegally as they didn't have the necessary licence. Thus, they cheated both customers and the government, the CCB said.

Nikhil is related to the owner and was in charge of the shop while the three others arrested were employees. The CCB believes the owner's arrest will lead to the recovery of more gold. A case has been registered at the Halasurugate police station.