Investigation expands across Karnataka; KPID Act invoked

Mysore/Mysuru: The Mysuru City Crime Branch (CCB) has received more than 200 complaints within just four days in connection with the multi-crore gold fraud allegedly committed by Soundar Raj alias Chinnathambi and his associate companies, SDJ Gold Company, DGF Gold and Diamonds and Dhanaganapathi Finance.

On May 16, the City Police had appealed to the public to approach the CCB office with relevant documents to assist in the ongoing investigation into the large-scale fraud.

Soundar Raj, proprietor of Dhana Ganapathi Golden and Diamond Firm (DGF), is accused of cheating customers by promising to purchase gold ornaments at premium prices and provide loans at low interest rates. Police said he allegedly melted pledged ornaments without paying customers their due value and misused the assets for personal gain.

Speaking to Star of Mysore this morning, CCB Assistant Commissioner of Police (ACP) Mohammad Sharif Rawathar said the designated Investigating Officer at CCB office has so far received over 200 complaints.

“Since May 16, we have been flooded with complaints, not only from Mysuru but from different parts of the State. Considering the scale of financial exploitation, cases are being booked under the stringent Karnataka Protection of Interest of Depositors in Financial Establishments (KPID) Act,” he said.

Accused in judicial custody

The CCB launched an intensive crackdown on the accused following public protests in front of the City Police Commissioner’s office. Based on a complaint lodged by H. Mahantesh of Davangere, the Kuvempunagar Police registered an FIR against Soundar Raj. CCB officials arrested him on April 29.

The case has been registered at Kuvempunagar Police Station under various sections of the Bharatiya Nyaya Sanhita (BNS), including cheating and criminal breach of trust.

The accused is currently in judicial custody. ACP Rawathar said that while the initial complaints surfaced in Mysuru, victims from across Karnataka are now coming forward.

“Given the huge number of complaints and the financial trail involved, the detailed investigation is likely to take another four to five months,” he added.

Meanwhile, to caution the public against further fraud, the City Police Commissioner recently released a video advisory and awareness posters on the official Facebook page of Mysuru City Police. The advisory lists the outlets operated by the accused and warns citizens against entering into any financial or business dealings with those establishments.