Two arrested in Chennai for duping man by offering gold loan at low interest rate

Two persons, including a director of a company, were arrested by the Central Crime Branch on charges of cheating. The police said they obtained 1,899 g (238 sovereigns) of gold jewellery from a man by promising ‘high-value’ gold loans at a low interest rate.

According to the police, Ganesh, who runs a private automotive company in Moulivakkam, had approached Surender, the owner of a private firm called GSN, located in Nungambakkam, and its directors Kaja Moideen Bashith and others, seeking financial assistance to redeem his family jewellery weighing 1,899 g that was pledged in a bank.

The accused allegedly assured him that they would provide a higher gold loan amount at a low interest rate and, after redeeming the jewellery, would pledge it at their company with interest at 1.15% per month, along with an additional amount of ₹30 lakh.

Believing their assurances, Ganesh redeemed the jewellery, which was pledged for ₹1.02 crore at the bank, and in March 2025, pledged the gold at the accused’s private company. After adjusting the loan amount, the accused paid him an additional ₹16 lakh. They also allegedly deducted ₹1.75 lakh as commission and ₹75,000 as service charges. However, the accused failed to pay the additional amount promised for the jewellery.

When Ganesh later stated that he was willing to repay the entire loan amount with interest and demanded the return of his jewellery, the accused refused to return it.

After investigation, the police arrested the accused Surender, 37, of Chetpet, and Kaja Moideen Bashith, 36, of Choolaimedu.