Special Squad Probes Massive Gold Fraud in Thiruvananthapuram

On August 10, 2025, Thiruvananthapuram Police formed a special twelve-member squad to investigate a widespread gold fraud involving three jewellery businesses, Al Muktadir Gold and Diamond Jewellery, AR Razzaq Gold and Diamond Jewellery, and Al-Jaleel Jewellery. The businesses operated under different names, yet belonged to the same group, aiming to avoid tax liability. Authorities uncovered elaborate schemes where customers booked gold nearly a year in advance with no making charges and were promised profit shares in exchange for old gold deposits. When these investments collapsed, customers neither received returns nor refunds.

Fraud Operated on Money Chain Model

The special squad, led by DCP Nakul Rajendra Deshmukh, found that the scam functioned like a classic money chain. Funds from new customers paid returns to earlier investors until the chain collapsed. The collapses left hundreds of victims out of pocket. Police registered over 200 cases across multiple stations, implicating the jewellery owner, managers, salesmen, and agents for criminal breach of trust and cheating under the Bharatiya Nyaya Sanhita. They continue collecting transaction records, complaints, and other evidence while considering transferring the probe to the Crime Branch.

Growing Complexity and Escalating Impacts

This fraud follows an alarming WS Gold investment scheme involving Athira Gold and Silks, where unlicensed operations left many victims unpaid. The police had to consult the Reserve Bank of India due to license concerns. Meanwhile, previous reports show that the fraud could balloon to around ₹1,000 crore, affecting over 2,000 customers across Kerala. Investigations continue with additional cases registered against the key accused. These developments signal systemic challenges in regulating such deceptive schemes, with long-term financial trauma for victims.

This case underscores the danger when trustworthy institutions weaponize credibility. Jewellery businesses hold deep cultural faith in India. Regulators must act not only to punish fraud, but also to prevent it by tracking suspicious deposits and enforcing transparency. Citizens deserve better protection against schemes that prey on timing, tradition, and trust.

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