Pledges artificial gold for 1.5 crore in KSFE; case against five including employee

MALAPPURAM: A major fraud has been noticed in KSFE branch after pledging artificial gold. The fraud was detected at the KSFE branch in Valanchery, Malappuram. The police have registered a case against Rajan, the appraiser of Valanchery branch, Abdul Nishad, Muhammad Sharif, Muhammad Ashraf and Rashidali, natives of Palakkad, who pledged the artificial gold. They stole Rs 1.48 crore after pledging the artificial gold after making them believe that it was pure gold of 221.63 sovereigns.

Rajan is an employee who checks whether the gold is real when it is being pledged. The police said the fraud was committed with his help. On being suspicious, the branch manager lodged a complaint with the police. The gold was pledged through ten accounts. For some chits, a security deposit has been placed on the pretense that it was gold.

The gold was pledged in November and December last year and in January this year. The police suspect the role of other employees in the incident.