Ullal: Man arrested for mortgaging fake gold for loans

Ullal: Police here have arrested a man for allegedly defrauding lakhs by mortgaging counterfeit gold in a co-operative bank.

The man arrested has been identified as Sadiq from here.

Sadiq had taken a gold loan from a prestigious co-operative bank at Mudipu. The employees of the bank suspected the purity of the gold ornaments mortgaged by him and the branch manager contacted the police.

Police called Sadiq to the branch where he accepted to the gold ornaments being counterfeit and also revealed that he has mortgaged more such gold at banks in Ullal and Konaje.

27 cases have been registered at police stations across the Dakshina Kannada district about counterfeit gold being mortgaged for loans from banks.

Police suspect that a Kerala-based gang is behind this scam and supply of counterfeit gold across the district.