Private finance firm duo arrested for Rs 2 crore gold loan fraud

A private finance company operator and his associate were arrested by police for allegedly cheating a businessman of gold jewellery worth around ₹2 crore by luring him with low-interest loan offers.
According to police, Ganesh, a resident of Moulivakkam, had been running a private business and was introduced to Surender of Sethupattu, who operated a private finance firm, and Kaja Moideen Basith of Choolaimedu, a director in the same firm.
To expand his business, Ganesh had earlier mortgaged about 238 sovereigns of gold jewellery, valued at nearly ₹2 crore, with a bank and obtained a loan of ₹1 crore.
As he faced difficulty in repaying the loan, Surender reportedly offered to retrieve the jewellery and promised a higher loan amount at a lower interest rate if the gold was re-mortgaged with his finance company.
Trusting the offer, Ganesh recovered the jewellery from the bank and pledged it with Surender’s firm.
However, the accused allegedly failed to provide the additional loan amount as promised.
When Ganesh later sought the return of his jewellery, stating that he was ready to clear the loan with interest, the jewellery was not returned. Following this, Ganesh lodged a complaint with the Chennai Police Commissioner’s Office.
Based on the complaint, the Central Crime Branch registered a case, confirmed misappropriation of the jewellery, and arrested Surender and Kaja Moideen Basith. Further investigation is under way.