Mysuru: An alleged gold fraud in Mysuru has taken a serious turn, with Krishnaraja MLA T.S. Srivatsa demanding that the Karnataka government constitute a Special Investigation Team (SIT) to probe the case against Soundar Raj alias ‘Chinna Tambi’. The accused and firms allegedly linked to him are accused of targeting people who had pledged gold with financial institutions by offering loans at lower interest rates and promising to buy back their ornaments later at higher prices. Complainants have alleged that the companies subsequently failed to make the promised payments and that the pledged ornaments were allegedly melted, leading to substantial financial losses.
Speaking to reporters in Mysuru on Monday, Srivatsa said he would raise the matter through a Calling Attention Motion during the upcoming Assembly session. He also assured the alleged victims that their concerns would be taken up at the state legislature. An FIR has already been registered against Chinna Tambi at Kuvempu Nagar Police Station in Mysuru following complaints from several people.
Low-interest loans and higher buyback prices promised
According to the complaints, the accused and companies associated with him approached people who had pledged their gold with financial institutions for loans. They allegedly offered to arrange loans at interest rates lower than prevailing market rates and subsequently buy back the pledged ornaments at higher prices.
The offer was allegedly presented as a way for customers to secure financial benefits while also receiving better value for their gold. Several people reportedly entered into transactions after relying on these assurances.
However, complainants later alleged that the promised payments were not made. They further alleged that instead of returning the ornaments or paying the agreed amount, the gold was melted. These allegations have formed the basis of the criminal complaint and the ongoing investigation.
The demand for an SIT has now gained importance because of allegations that the suspected fraud could involve a large number of people and substantial quantities of gold.
More than 400 victims suspected
Srivatsa said the number of people affected could exceed 400. He also claimed that approximately 600 kilograms of gold may have been transacted through the accused. The exact number of victims and the quantity of gold involved, however, will have to be established through a detailed investigation.
The alleged scale of the transactions has raised questions about the operations of the companies involved, the movement of the gold and the financial transactions connected with the business. An SIT probe, according to the MLA, could help establish the complete extent of the alleged fraud and identify everyone who may have been involved.
Investigators are also expected to examine documents relating to the transactions, the companies’ operations and the ownership and movement of the pledged gold.
Government authority formed to seize properties
The state government has already constituted a competent authority to initiate proceedings for the confiscation of properties allegedly belonging to the accused. The authority is headed by the Assistant Commissioner of Mysuru taluk.
Srivatsa has called for the process to be expedited, saying quicker action would help restore the confidence of the alleged victims. Identification and seizure of properties could become an important part of the proceedings, particularly if the authorities ultimately determine that the assets were acquired through proceeds connected with the alleged fraud.
The property-related proceedings may also become relevant to any future effort to provide relief to victims, subject to the outcome of the legal process.
Victims allegedly attacked an establishment
Anger among the alleged victims has also led to a separate incident. Recently, some people reportedly targeted an establishment believed to be associated with the accused. Stones were allegedly thrown and property was damaged during the incident.
An FIR was subsequently registered against six to eight people in connection with the vandalism. Srivatsa appealed to the alleged victims not to take the law into their own hands, saying such actions would not help them secure justice.
He said the matter should instead be pursued through legal and democratic channels and reiterated that he would raise the issue during the Assembly session.
Allegations of police involvement also raised
Allegations have also been raised about possible involvement of some police personnel in the alleged fraud. Srivatsa said no action had so far been taken by the government on these allegations.
An SIT, if constituted, could examine these claims independently along with the broader allegations concerning the gold transactions. A wider investigation could also determine whether anyone else assisted the accused in attracting customers, handling pledged gold or managing the financial transactions.
Bail raises concerns among victims
Srivatsa also expressed concern over the accused being released on bail. He said efforts should be made through the legal process to seek appropriate action, adding that this would be important for restoring the confidence of the alleged victims.
The case is now likely to remain under scrutiny on several fronts, including the demand for an SIT, the confiscation of properties, the tracing of the alleged 600 kg gold transactions and verification of the number of victims. The outcome of the investigation will determine the actual scale of the alleged fraud and the role of the accused and any other persons involved.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
