In Mysuru city, the investigation into the alleged gold pledge fraud involving accused Soundar Raj, also known as Chinna Thambi, has intensified after four separate complaints were registered so far, triggering widespread concern among residents.
According to police sources, the accused allegedly attracted customers through various gold trading firms by offering loans against gold at unusually low interest rates and promising higher returns for pledged jewellery. These claims reportedly convinced several individuals to hand over their valuable gold ornaments.
Registration Begins for FutureCrime Summit 2026, India’s Largest Cybercrime Conference
Victims have alleged that although they pledged their gold jewellery under agreed conditions, they neither received the promised value nor got their ornaments returned in a safe condition. Subsequent inquiries reportedly revealed that in several cases, the jewellery was allegedly misused.
It has also been alleged that gold ornaments collected from customers were melted down or otherwise disposed of improperly, causing significant financial losses to the affected individuals. Victims further claim they were misled for extended periods without clarity on their pledged assets.
The accused has already been arrested in connection with an earlier registered case. Meanwhile, police have urged the public to come forward if they have been cheated in a similar manner and to assist in the ongoing investigation by submitting relevant complaints and documents.
Authorities stated that all submitted documents are being carefully examined, and transactions linked to the accused’s firms are under detailed scrutiny. Several victims had previously approached different forums seeking justice over the alleged misuse of their pledged gold.
Complaints had also reached bodies including the Karnataka State Commission for Women, where victims alleged that their pledged jewellery was improperly handled, leading to severe financial distress.
Investigating agencies are now working to determine the total number of people allegedly affected through the accused’s business network and the overall financial loss involved. Preliminary estimates suggest the scale of the alleged fraud could run into several lakh rupees.
Police have appealed to affected individuals to submit all relevant records, receipts, and transaction documents to the investigating team to help reconstruct the full trail of dealings and establish the facts behind the alleged fraud.
The case remains under active investigation, and officials indicated that the number of complaints may rise further as more affected individuals are expected to come forward in the coming days.
Local business circles have expressed concern following the exposure of the alleged fraud, stating that several individuals were drawn in by promises of low interest rates and high returns, only to face unexpected financial losses. Experts note that such schemes often rely on trust-based informal networks, which can quickly turn into large-scale financial risks.
Authorities further stated that the case may not be limited to a single firm and that multiple layers of transactions are being examined. Bank accounts, financial records, and asset details linked to the firms are under scrutiny to trace the flow of funds. Both digital and physical records are being reviewed to establish clarity on the financial network involved.
Police have also advised the public to verify all documentation thoroughly before engaging in any gold pledge or investment transactions and to deal only with authorized institutions. They cautioned against offers that promise unusually high returns or unusually low interest rates, calling them potential warning signs of fraudulent activity.
The investigation is ongoing, with officials stating that further developments and new findings are expected as the probe continues.
