Coimbatore gold bullion trader duped of ₹1.27 crore in ₹2,000 note exchange scam; six arrested

The police have arrested six persons who cheated a Coimbatore-based gold bullion trader of ₹1.27 crore by promising him 15% of commission for exchanging ₹2,000 denomination currencies with ₹500 notes.

The arrested have been identified as S. Meena (38) of Nilakottai in Dindigul, S. Pandiyan (52) of Genguvarpatti in Theni, M. Alagarsamy (45) of Periyakulam in Theni, Chinna Kutti (43) of Mahalingapuram near Pollachi, K. Sowmiyan (29) of Madurai Road in Theni and J. Gavaskar (26) of Karuvelnayakkanpatty in Theni.

According to the police, K. Prakash (44) of Telungupalayam in Coimbatore is engaged in the gold bullion business. He got introduced to Kutti through the manager of a private bank in the city.

Kutti told Mr. Prakash that a person known to him was having ₹2,000 notes in huge sums. He claimed that 15 % commission would be given for exchanging ₹2,000 bills with ₹500 notes. Mr. Prakash believed the claim and met the accused at Ambarampalayam near Anamalai around 1 p.m. on June 6. Diverting the attention of Mr. Prakash and another person who accompanied him, the accused took away ₹1,27,50,000 (all ₹500 denomination currencies), from him and sped away in a car, said the police.

Mr. Prakash immediately alerted the police about the incident, following which Coimbatore District (Rural) Superintendent of Police V. Badrinarayanan constituted six special teams under G. Keerthivasan, Deputy Superintendent of Police (Valparai sub-division) to trace the accused.

The team traced the accused on Sunday and recovered the lost money from them, besides seizing a note counting machine and three cars used by them. They were produced before a court and were sent to judicial remand.

Mr. Badrinarayanan said the investigating team would verify the source of the ₹1.27 crore and inform appropriate authorities about the incident. Also, the police would check if the accused indeed possessed ₹ 2,000 bills in huge sum for the exchange and the source of the money. According to the police, Mr. Prakash is believed to have been the first victim of the money exchange scam by the gang.