Kannur city police on Friday arrested a man in connection with a large-scale financial fraud in which a homemaker was allegedly cheated of gold ornaments and cash under the pretext of offering interest-free gold loans.
Kannur City Police Commissioner Nidhin Raj said the accused, Mohammed Shibil C. (39), a resident of Thottummel in Vadakumbad, was one of the owners of the fraudulent establishment and the fourth accused in the case. The firm operated from a building near the Thalassery General Hospital, posing as a legitimate gold loan provider.
According to the police, the victim, a native of Dharmadam, was lured with the promise of a one-year interest-free gold loan. She was assured that on repayment, the same gold ornaments pledged would be returned, or alternatively, a new ornament of equal weight and chosen design would be provided.
Trusting the offer, the complainant handed over 62.300 grams of gold ornaments in exchange for a loan of Rs2.5 lakh. Subsequently, the accused allegedly collected an additional Rs1.25 lakh, assuring the return of the pledged gold. However, neither the gold nor the money was returned, forcing the victim to approach the Dharmadam police.
Police said another accused, E. Prakasan, had already been arrested earlier. Investigations revealed that the accused were allegedly involved in a fraud amounting to nearly Rs3 crore, with around 30 similar complaints registered against them.
Further investigation is underway to trace additional victims and recover the cheated assets.
