One more accused at large; 28 gold plated bangles, Rs. 2 lakh cash seized; investments frozen

Madikeri: Twelve out of 13 individuals involved in defrauding the Kodagu District Cooperative (DCC) Bank by pledging fake gold jewellery to secure loans have been arrested, announced Kodagu Superintendent of Police (SP) K. Ramarajan.

Speaking at a press conference in Madikeri, SP Ramarajan detailed the arrests and revealed that the mastermind, 48-year-old C.M. Mohammed Kunji from Ernakulam, Kerala, orchestrated the fraud and he has been arrested now.

Others arrested include: 43-year-old K.A. Nishad, 60-year-old P.J. Pradeep, 47-year-old Nawaz from Malappuram, 35-year-old K.A. Mohammed Rizwan and 50-year-old Abdul Nasir from Kunjila village in Napoklu, Kodagu, 39-year-old P.H. Riyaz, 37-year-old B.A. Moosa and 42-year-old M.M. Mohammed Anees from Yemmemadu Padimaani village, Kodagu, 32-year-old Khatija from Padiyani, 38-year-old Rafiq and 33-year-old Farhan from Bhagamandala Ayyangeri.

The thirteenth accused, Hamsa, remains absconding. The Police seized 223 grams of gold-plated (fake) jewellery, including 28 bangles, an iPhone worth Rs. 1.40 lakh, and Rs. 2 lakh in cash. Additionally, Rs. 2,08,221 in a bank account and Rs. 1,26,504 invested in insurance policies have been frozen.

The fraud involved pledging 625 grams of fake gold jewellery to secure loans totalling Rs. 34,95,016 from various branches of the DCC Bank in Madikeri and Virajpet, as well as other financial institutions like Vyavasaya Sahakara Sangha Niayamitha (VSSN) and Muthoot Fincorp Limited. According to the SP, goldsmith P.J. Pradeep manufactured gold-plated jewellery with funds provided by Mohammed Kunji. Middleman K.A. Nishad would collect the jewellery and pass it to Mohammed Rizwan, who later pledged it at banks. The fraud came to light when Rizwan attempted to pledge eight fake bangles on Dec. 8, leading to his arrest.

Police investigations revealed that eight cases had been registered against the accused across various Police stations. Among the arrested, 10 were linked to a case under Madikeri City Police limits and two were involved in a case in Bhagamandala Police limits.

The arrest and seizure operation was conducted by a team comprising Madikeri Dy.SP Mahesh Kumar, CEN Police Dy.SP Ravi, Madikeri City Circle Inspector P.K. Raju, Madikeri Rural Circle Inspector Anoop Madappa and their staff.

Out on bail, accused continue their fraudulent activities

Among the arrested, goldsmith P.J. Pradeep and middleman K.A. Nishad have a history of similar crimes, with 15 and 4 cases registered against them in Kerala, respectively. Despite being out on bail, they resumed their fraudulent activities, Kodagu Superintendent of Police (SP) K. Ramarajan revealed.

A case has been registered under Section 111 of the Bharatiya Nyaya Sanhita (BNS), which pertains to organised crime, including continuing unlawful activities such as economic offences, cybercrime, trafficking, and other serious crimes. The section allows for a minimum sentence of five years imprisonment, with a maximum penalty of life imprisonment.

The SP stated that an appeal would be made to the Court to deny bail to the accused, citing their history of repeat offences. Additionally, there is a provision under Section 111 to seize the assets of the accused.

Steps are underway to confiscate properties linked to the fraud, including a house worth Rs. 1 crore currently under construction by the mastermind, C.M. Mohammed Kunji.