Beed/Pune: In a case that has shocked local communities and highlighted the vulnerability of customers to financial scams, the Maharashtra Police on Thursday arrested a jeweller for allegedly defrauding at least 16 customers to the tune of ₹2.5 crore. The accused, identified as Vilas Udawant, had allegedly orchestrated a sophisticated fraud by selling fake gold to customers who then sought bank loans using the counterfeit jewellery as collateral.

According to police reports, Udawant, a resident of Pandit Nagar area in Beed district, had been operating a jewellery shop in Beed when he began supplying fake gold ornaments to clients seeking loans. The victims, unaware of the counterfeit nature of the jewellery, submitted their gold as collateral to banks, following standard loan procedures. However, the gold provided by Udawant was not genuine, and the jeweller allegedly manipulated the process to siphon money through fraudulent loan approvals.

Once the scheme came to light and he faced the risk of being caught, Udawant reportedly fled to Dehugaon, near Pune, where he opened a new jewellery shop to continue his business. Police were informed of his presence in Pune, and acting on a tip-off, a team from Beed police conducted a search operation at his shop in Dehugaon. During the raid, authorities seized 18 kilograms of silver from the premises and took Udawant into custody.

Investigations revealed that Udawant’s fraudulent operations were carefully planned and executed. Over the course of approximately two months, he had successfully manipulated at least 16 gold loan applications, resulting in an estimated accumulation of ₹2.5 crore. Police officials described the method as a “fool-proof plan” that exploited both customer trust and the standard banking process, allowing Udawant to amass significant sums before fleeing Beed.

The modus operandi reportedly involved creating fake gold ornaments in his Beed shop, which were then pledged by customers to local bank branches for loans. The loan applications, forwarded by Udawant or his associates, were approved by the banks without the detection of the counterfeit nature of the gold. After completing the transactions, Udawant would sell the fake jewellery or silver components for profit, leaving the customers with invalid collateral and substantial financial loss.

Authorities emphasized that such scams often rely on the credibility of jewellers and trust in financial institutions. Victims typically remain unaware until the bank flags discrepancies in collateral verification or when attempts to redeem pledged gold fail. In this case, the scam was uncovered only after multiple complaints and investigative coordination between Beed police and banking authorities.

Udawant’s arrest comes in the wake of similar fraudulent schemes reported elsewhere in India. For instance, in Bengaluru, the Central Crime Branch arrested two men allegedly involved in a “zero per cent interest gold loan” scam. In that case, the accused had opened a jewellery shop in Vidyaranyapura, advertising loans with no interest, to attract unsuspecting customers. Clients pledged genuine gold ornaments for loans, but the accused illegally sold the pledged gold to other jewellers, earning a profit of 40–50 percent. Over the course of the scam, approximately four kilograms of goldwere misappropriated, and gold and silver items worth ₹1.8 crore were seized by police.

The recurring nature of such scams underscores the importance of public vigilance and stricter regulatory oversight in the jewellery and banking sectors. Both Maharashtra and Karnataka cases reveal a pattern: fraudsters exploit public trust in jewellers and the loan process, often targeting individuals who lack awareness of verification protocols or legal recourse. Customers are advised to verify the authenticity of pledged items through proper certification and to follow up with banks regarding collateral verification before completing loan agreements.

In the Maharashtra case, police have registered a formal complaint against Udawant, and further investigation is underway to determine whether any accomplices were involved. Authorities are also coordinating with banks to assess the full scale of financial loss and to assist victims in recovering funds where possible.

This case has drawn attention not only to the financial fraud itself but also to the broader systemic risks in gold-backed lending schemes. While gold loans remain a popular financial instrument in India due to their relatively low interest rates and accessibility, incidents such as this highlight the need for enhanced due diligence by both lenders and borrowers. Customers are encouraged to demand proper hallmarks and certification for gold ornaments and ensure transparency in the loan approval process.

Meanwhile, Udawant is currently in police custody in Pune and is expected to be produced before a local court shortly. Authorities have warned other jewellers against engaging in similar fraudulent activities, emphasizing that legal action will be taken against anyone attempting to cheat customers through counterfeit gold or manipulative loan schemes.

The Beed Police Department has also issued an advisory for the public to remain alert to suspicious offers of loans with unusually high amounts or rapid approval processes, particularly in cases involving jewellery as collateral. They have highlighted the importance of reporting any fraudulent activity immediately to prevent further financial loss and legal complications.

In conclusion, the arrest of Vilas Udawant serves as a reminder of the potential risks associated with gold-backed loans and the sophistication of modern financial frauds. While authorities work to bring justice to affected customers, the case highlights the ongoing need for vigilance, regulatory oversight, and public awareness to prevent similar scams in the future.

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