The Hindu : Front Page : Man arrested for jewel-loan racket

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Sunday, Sep 17, 2006
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Man arrested for jewel-loan racket

Staff Reporter

Owner of a jewellery showroom in Tirunelveli, the mastermind behind the crime

AS GOOD AS REAL: The City Commissioner of Police, G. Uma Ganapathi Sastry, inspecting the fake jewels in Tirunelveli on Saturday. — Photo: A. Shaikmohideen

TIRUNELVELI: The Tirunelveli Junction police have arrested a person for pledging imitation gold ornaments in a nationalised bank here for availing a loan of Rs. 8.70 lakh.

Speaking to reporters here on Saturday, the Tirunelveli City Police Commissioner, G. Umaganapathi Sastry, said that K. Abdul Hussein (36) of Melapalayam had pledged 1,397 gm of `gold ornaments' in the bank on four occasions in the past 40 days to get loans.

Though the mortgaged jewels passed the assessment tests, the Chief Manager of the branch, Ramachandran, grew suspicious and filed a complaint with the police, who nabbed Hussein.

During interrogation Hussein confessed that Mohammed Hanifa, owner of a jewellery showroom at Melapalayam, was the brain behind the scam. "After making jewels with silver-copper mix, a gold coating was given so that the ornaments could pass assessment tests. As the fake ornaments, with only 30 to 40 per cent gold, were made by Hanifa, he had taken the major chunk of the loan," Mr. Sastry said.

During a raid conducted in the house of Hussein, the police seized Rs. 1.64 lakh in cash and rubber stamps of a higher secondary school in Melapalayam and the village administrative officer of the area. The police are trying to unravel the mystery behind the making of these seals.

A special team is looking for Hanifa. Investigations are on to find out whether the duo had pledged fake ornaments in any other banks.

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