scorecardresearch
Follow Us:
Wednesday, May 25, 2022

Shady gold auction raises police suspicion, 63 kg seized

DCP Goyal: The gold seized when a group of middlemen were selling the 63 kg of gold at 80% of the actual price.

By: Express News Service | Bangalore |
September 6, 2014 8:09:45 pm

The Central Crime Branch (CCB) police in Bangalore conducted a raid at a store room of the gold loan firm IIFL Finance Limited and seized 63 kg of gold worth around Rs 18 crore after receiving a tip off that stolen gold was being hoarded at the store room. The concerned authorities at the store room failed to furnish supporting documents for the gold leading to the suspicion that it could be stolen goods. The police have arrested two persons identified as Raghavendra and Manjunatha Reddy who were middlemen between ‘customers’ and the gold loan firm.

“There are details of the customers who pledged their gold in the firm. Many customers are untraceable and this givers rise to the suspicion that this huge quantity gold or at least 60% of it is stolen property. We are investigating the case and the facts will be revealed soon,” joint commissioner of police (crime) Hemant Nimbalkar said. The CCB police have registered a case of cheating and criminal breach of trust in the Cubbon Park police station.  The gold was seized when a group of middlemen were trying to sell the 63 kg of gold at 80% of the actual price, Deputy Commissioner of Police (crime) Abhishek Goyal said. The gold allegedly kept illegally in the IIFL store room and not openly auctioned as required by standard legal procedures, the DCP said. “The CCB raided IIFL and seized auction files and also 63 kg of gold. Some middlemen were also arrested. The investigation continues. Many more people will be arrested soon,” he said.

Preliminary investigations have revealed that the head of of the local branch of IIFL at Cubbon Park maintained a file on the gold but without mentioning a base price and with no signatures of the customers who had pledged the gold. The officials of the firm claimed that they could sell the gold at any price they wanted since there are no guidelines from the Reserve Bank India. “We have written to the RBI for clarification in the case. We have been informed by the firm that the seized gold belongs to more than 3000 customers. But they have not maintained documents to support their claim,” DCP Goyal said. The police have seized all the documents related to the gold and are verifying their authenticity.

Best of Express Premium

(Joining) BJP an option, AAP has better strategy than Congress: Hardik PatelPremium
Explained: The new Indo-Pacific blocPremium
Rising global rates, Re fall may scale down India Inc ECB plansPremium
Opinion: The message from the government’s wheat export banPremium

For all the latest Bangalore News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard
Advertisement
Advertisement
Advertisement
Advertisement