A jewellery trader from Mumbai has alleged that he was cheated of Rs 14 lakh in Thane after a group posing as gold sellers promised to deliver 100 grams of gold at a discounted rate, took the cash and disappeared.
Police have registered a case against six persons and begun an investigation into what may be a wider organised fraud network.
Discounted Gold Offer Led to Cash Deal
According to police officials, the victim is a 31 year old jewellery trader from Goregaon in Mumbai. In his complaint, he said a group of individuals approached him with an offer to sell gold at a price significantly lower than the prevailing market rate.
Investigators said the accused gradually built trust through repeated conversations and presented themselves as genuine traders with established contacts in the gold business. The trader was allegedly assured that the deal would allow him to secure substantial profit margins.
After several rounds of discussion, the transaction was allegedly fixed for May 12 in the Vasant Vihar area of Thane. The victim reportedly reached the location carrying Rs 14 lakh in cash, expecting to receive the promised gold immediately.
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Accused Allegedly Collected Cash and Vanished
According to the complaint, the accused took the money but did not hand over the gold consignment. The trader later tried to contact them, but their mobile phones were reportedly switched off.
Realising that he had been cheated, the victim approached Chitalsar police station and lodged a formal complaint. On the basis of that complaint, police registered an FIR against three identified individuals and three unidentified accused under provisions of the Bharatiya Nyaya Sanhita related to cheating and criminal breach of trust.
Investigators are now examining mobile phone records, possible financial trails, meeting locations and other evidence connected to the transaction. The case has again drawn attention to the risks involved in informal high value dealings, especially where large amounts of cash are exchanged without formal safeguards.
Police Probe Possible Organised Fraud Network
Police officials suspect the accused may be linked to a larger organised network targeting jewellery traders, investors and businessmen through fake precious metal deals. Investigators are also reviewing CCTV footage from nearby areas to identify the suspects and trace their movements before and after the incident.
Sources familiar with the probe said similar frauds have surfaced in other parts of the country, with victims being lured by offers of gold at unusually low rates. Such scams often exploit informal business practices and a preference for cash transactions, making the movement of money harder to trace.
Experts have advised jewellery traders and investors to verify the identity, GST details, business registration and transaction history of sellers before entering into high value transactions. Authorities have also recommended avoiding large cash deals and using traceable banking channels for payments involving precious metals and other costly commodities. Police said technical surveillance and digital evidence are now being used to trace the accused and determine whether they were involved in similar cases in Mumbai, Thane or nearby areas.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
