Mysore/Mysuru: The City Crime Branch (CCB) Police have arrested Sounder Raj alias Chinnatambi, owner of Dhana Ganapathy Gold and Diamond (DGF) Company, on charges of cheating customers by allegedly failing to return pledged gold.

The Kuvempunagar Police registered an FIR against him based on a complaint filed by H. Mahantesh of Davangere. Acting on the case, CCB sleuths took Sounder Raj into custody. He was produced before a Court and remanded to Police custody for further investigation.

According to the Police, the accused lured customers by promising higher loan amounts at lower interest rates against pledged gold. However, he allegedly failed to return the gold to the customers.

In his complaint, Mahantesh stated that he, along with his friends Sushma, Mala, Brahmareddy and Rekha, had pledged 1.100 kg of gold at a Karnataka Bank branch on P.B. Road, Davangere, on Apr. 15, 2024 and obtained a loan of Rs. 62 lakh.

He said that after coming across an advertisement by DGF Gold and Diamond Company claiming to facilitate the release of pledged gold at favourable terms, they contacted the firm on Feb. 20 and shared details of their pledged gold.

The following day, a group led by one Manjunath, claiming to be company representatives, visited their residence.

Mahantesh alleged that the group transferred Rs. 62.05 lakh to the accounts of the five individuals and later took them to Mysuru. He claimed that during the process, the accused cheated them while weighing the gold and threatened them when they raised objections.

He further alleged that the accused melted 560 grams of gold jewellery and a 100-gram gold biscuit, and told them that the remaining gold would be pledged again, asking them to collect it after six months. A receipt was issued and an additional Rs. 2 lakh in cash was also given along with the bank transfers, he said.

However, when they contacted the company after six months, they were allegedly told that the gold had been sold and would not be returned. Mahantesh has urged the Police to take action against Sounder Raj and others associated with the company for fraud and cheating.

It may be recalled that several customers had recently staged a protest in front of the City Police Commissioner’s office, accusing a company owned by Sounder Raj of fraud.