12 arrested in Madikeri for taking loan from bank by pledging fake gold

Madikeri: The Kodagu district police have busted a racket involved in defrauding banks by pledging fake gold to secure loans and have arrested 12 individuals.

The arrested are, K A Mohammad Rizwan (35), and Abdul Naseer (50) from Kunjila village, P H Riyaz (39), B A Moosa (37), M A M Haneef (42), Khateeja (32) from Padiyani Emmemadu village, Rafeeq (38) and Faraan (33) from Ayyangeri, Bhagamandala, K P Nawaz (47) from Malappuram, Kerala, K A Nishad (43), C M Mohammad Kunhi (48) and P J Pradeep (60) from Ernakulam, Kerala.

Another accused named Hamza is still at large.

Authorities have seized 28 gold-plated bangles weighing 223 grams, cash amounting to Rs 2 lakh and Rs 2.08 lakh in bank accounts, investments worth Rs 1.08 lakh in insurance, and an iPhone valued at Rs 1.40 lakh from the accused. The group had pledged a total of 625 grams of fake gold jewellery across various bank branches and financial institutions in the district, securing loans amounting to Rs 34.95 lakh.

Addressing reporters here on Thursday, Superintendent of Police K Ramarajan stated that eight cases were registered against the accused at Madikeri town, Virajpet town, rural, and Bhagamandala police stations.

The main accused, Pradeep, had a total of 15 cases, including three this year, while Nishad faced four cases, including one robbery charge. They repeatedly committed such crimes after being released on bail.

The key orchestrator of this operation was Mohammad Kunhi from Kerala, a jewellery maker who provided funds to Pradeep to apply a gold coating of about 1.5 grams on the bangles, undetectable even to skilled gold appraisers. These fake bangles were then pledged to the banks to avail loans. Middleman Nishad acquired the fake gold and handed it over to Nawaz, extending the network to Kodagu, as informed by the police.

K A Mohammad Rizwan from Kunjila village recently attempted to pledge eight gold bangles at the Kodagu District Cooperative Central Bank's Madikeri main branch. Upon inspection, the bangles were found to be fake.