Two held for pawning fake gold jewellery in Erode
Two men were arrested in Erode for defrauding a private finance firm of over ₹3 lakh by pledging fake gold jewellery. The suspects also used a counterfeit Aadhaar card to facilitate the loan application.
Why it matters
This case underscores the risks of financial fraud and the importance of rigorous verification processes in the lending sector.
The Erode South police on Saturday (September 5) arrested two persons for allegedly cheating a private finance firm of ₹3.06 lakh by pledging fake gold jewellery and producing a counterfeit Aadhaar card.
According to the police, the accused, Amjith and Mohanraj, both from Salem, approached a pawnshop run by Singaram on S.K.C. Main Road at Surampatti, claiming that they were in urgent need of money. They handed over what they described as a 30-gram gold chain and an Aadhaar card and sought a loan against the jewellery.
As the hook of the chain appeared to be gold when tested, Mr. Singaram believed that the entire jewellery was of gold and handed over ₹3,06,500 to the duo. Four days later, on examining the jewellery, he found that it was fake.
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