Mysuru BJP leaders demand action against ‘gold purchase’ firms over alleged fraud and exploitation

Describing the companies as a ‘mafia’, R Raghu said, he will also write a complaint to the ED, seeking a probe into the financial irregularities of the ‘gold purchase’ companies

Mysuru: BJP leaders have called for stringent action against ‘gold purchase’ companies accused of luring debt-ridden individuals with promises of buying pledged gold at inflated rates and then cheating them.

Addressing a media conference, in Mysuru, on Thursday, BJP Karnataka state OBC Morcha president R Raghu (Kautilya) urged Karnataka Home Minister G Parameshwara to take action against the ‘gold purchase’ companies, which are not just cheating, but are looting gold from people.

Describing the companies as a ‘mafia’, Raghu said, he will also write a complaint to the Enforcement Directorate (ED), seeking a probe into the financial irregularities of the ‘gold purchase’ companies, which spend hundreds of crores on advertisements in the media, to lure and trap the people.

“In Mysuru city alone, the gold purchase companies may have looted over Rs 1,000 crore worth gold from thousands of people. The companies are operated by organised gangs, with ruffians, and threaten people who are already in financial crisis, with dire consequences. The companies know how to manage the authorities concerned and even the police refuse to file complaints against them. So, the Home Minister, Director General of Police and Mysuru Police Commissioner should form special teams to investigate the irregularities of such companies and take strict action against them,” Raghu said.

Raghu added, if the condition is this bad in Mysuru, the Chief Minister’s district, one can imagine the plight of the people in other districts, across Karnataka. “The Police department should open a special counter in all districts and cities, to facilitate filing of complaints against the gold purchase companies and to help the victims. Nationalised banks should open dedicated counters, to sell pledged gold in a legal way, to help the people who cannot repay loans and get the gold released,” he said.

Mysuru district (city) BJP president and former MLA L Nagendra asked, “Is it not the responsibility of the Police, to probe if any illegal business is operated in their jurisdiction area?”

“These companies advertise that they buy pledged gold at prices above market value across multiple platforms. People should be wary of such unrealistic promises. Media organisations should also question advertisements making such claims, and the police must investigate these firms to protect the public,” he said.