Cooperative society gold loan scam busted

Salem (TN), Jan 25: Two government employees and as many others, including a woman, have been arrested here in connection with a cooperative jewel loan

in which fake gold ornaments were pledged, police said today.

The total loan, amounting to Rs 91.45 lakh, was availed by pledging 77 items of fake gold, police said. Elampillai Co-operative Jewel Loan Society Secretary Govindan, Assistant Manager Kannan and two society members were arrested yesterday under various IPC sections including 420 (cheating) and 120 (B) (criminal conspiracy), police said.

The two members had separately availed loan of Rs 10.29 lakh and Rs 81.16 lakh between July 18, 2012 and March 31 last year by pledging gilted ornaments with the connivance of the two officials, police said. The four were remanded to judicial custody and lodged in the Central Prison here last night, sources added.

PTI