Malappuram: The gold appraiser at the Valanchery branch of state government-owned KSFE (Kerala State Financial Enterprises) was arrested for a scam involving pledging fake ornaments to raise Rs 7 crore.
After recording the arrest of the appraiser Rajan (67), a native of Kolathur, the Valanchery Police is probing the alleged involvement of four others namely Abdul Nishad (35), Muhammad Sharif (40), Panangattuthodi Rasheed Ali (37) and Parathottam Muhammad Ashraf (34). They are accused of pledging fake gold equivalent to 221 sovereigns.
The alleged scam took place between October 28, 2022, and January last year. The appraiser is responsible for ensuring the purity of the gold pledged at the institution. The employees, who got suspicious of the fraud alerted the branch manager, who filed a complaint.
It is understood that those suspected of the fraud have been long-standing customers of KSFE and have done transactions worth crores. It is learned that fake ornaments were pledged under ten accounts at the branch.
“The appraiser was arrested in connection with the case and the investigation is ongoing. We are checking branch documents,” said Tirur DySP K M Biju. The police are also probing the possible involvement of more employees.