Hyderabad: A well-organized inter-state silver fraud gang has been busted in Hyderabad, where traders were duped through a calculated scheme involving fake silver bars. Four accused have been arrested, while another member of the gang was nabbed in a separate operation. Investigations reveal that the group has been carrying out similar frauds across multiple states using a consistent modus operandi.
The case came to light after an industrialist based in Secunderabad’s Mahankali area filed a complaint. According to the complaint, on March 25, 2026, around 4:30 PM, a regular customer named Rajesh arrived at the premises along with an associate, carrying three raw silver bars. These bars were claimed to have purities of 61%, 63.75%, and 62.75%, and were accompanied by what appeared to be legitimate purity testing certificates.
FCRF Academy Launches Premier Anti-Money Laundering Certification Program
How The Scam Worked
Owing to prior business dealings and established trust, the complainant did not conduct a detailed verification. The accused then took 25 smaller silver bars, weighing a total of 6,350 grams and claimed to be of 60% purity, before leaving the premises. However, when the bars were later tested, it was discovered that they contained zero silver content. The fraud resulted in a financial loss of approximately ₹15 lakh.
Further investigation revealed two additional cases following the same pattern, involving frauds of 6.3 kg and 6.2 kg of silver respectively. This indicated that the incident was not isolated but part of a larger, organized network targeting traders using a repeated strategy.
Police inquiries uncovered that the gang members hail from Uttar Pradesh and Madhya Pradesh, with operations extending across Odisha, Delhi and other regions. The alleged mastermind of the operation has been identified as Hridesh Kumar, who is believed to have orchestrated the entire scheme.
Investigators found that the gang initially built trust by supplying genuine silver bars with around 60% purity. Once credibility was established, they switched to supplying fake bars with zero metal content, along with forged certificates, and escaped with the genuine silver obtained from traders.
Arrests And Recovery
The accused were arrested from multiple locations. Hridesh Kumar was apprehended on April 20 from Agra using a transit warrant. The following day, Sushil Kumar Varma and Prince Laddu Soni were also arrested from Agra, while Rajeev Jain was taken into custody from Etawah. Another gang member, Sonu Kushwaha, was arrested in Madhya Pradesh.
During the operation, authorities recovered 8.4 kg of silver, ₹1.5 lakh in cash, and a mobile phone from the accused. Officials stated that the suspects are also wanted in other similar cases involving 6 to 6.2 kg of silver each, with estimated losses of around ₹15 lakh per case reported at different locations.
Experts describe this as a classic example of a “trust-building fraud,” where criminals first gain confidence through legitimate transactions and later execute large-scale deception. In high-value commodities like precious metals, such frauds are becoming increasingly common, often supported by forged documentation and manipulated testing reports.
Authorities are continuing to interrogate the accused and are probing the full extent of the network. Preliminary findings suggest that the gang’s operations could be widespread, and more cases linked to this racket may surface in the coming days.
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.
