Man arrested for alleged gold loan fraud in Kannur

The Dharmadam police have arrested a man in connection with an alleged fraud in which gold ornaments and cash were allegedly swindled from a homemaker under the guise of offering interest-free gold loans.

The arrested is Mohammed Shibil C., 39, of Thottummel, Vadakumbad, one of the owners of the firm, and the fourth accused in the case.

The fraud was allegedly carried out under the cover of an establishment functioning at a building near the Thalassery General Hospital. The victim, a Dharmadam native, was allegedly lured by the accused with an offer of an interest-free gold loan for one year. She was promised that on repayment of the loan amount, she would be given back the same gold pledged or a new ornament of equal weight in models of her choice.

According to the police, the accused collected 62.300 grams of gold ornaments from the complainant for a loan of ₹2.5 lakh. They later obtained an additional ₹1.25 lakh from her, assuring the return of the pledged gold. However, neither the gold nor the money was returned, prompting the victim to approach the Dharmadam police.

Another accused in the case, E. Prakasan, had been arrested earlier. The police said the accused were involved in fraud amounting to nearly ₹3 crore and faced around 30 similar charges.