Athira Jewellery investment fraud case; major blow by gold price surge; indication that company had no license

KOCHI: It is reported that Athira Gold and Silks, which has swindled crores of common people, does not have a license to accept gold and cash deposits. The police have approached the Reserve Bank of India to confirm this. A license is mandatory to accept such deposits. The RBI report is likely to be received today or tomorrow.

There has been a flood of complaints since Athira Gold MD RJ Antony and his brothers Jose, Joby and Johnson have been arrested. In addition to gold deposits, the scam also included schemes that promised new gold for old gold. Investors came to know that the company had collapsed when Athira Gold's establishments were closed without notice.

All the investors in the company, headquartered in Munambam Pallippuram, are from Vypin, Paravur, Kodungallur and Cherai areas. Those who had deposited money with their children's marriage in mind also fell victim to the fraud. The company had taken a huge loan from a private bank. The bank attached their company in Ernakulam this month after they failed to repay. The accused were produced before the magistrate yesterday. An investigation is underway to find out where the money and gold collected from the investors were transferred.

Hit hard by Gold price surge

Athira Gold and Silks Company was hit hard by the skyrocketing gold price. The company accepted deposits on the understanding that gold would be delivered at the booked rate after a certain period of time. Things went downhill as the gold price surged. The company was attached by the bank and the expected income from the clothing business was not received. The company had to close down when more people came to buy gold after the deposit period was over.