The Crime Branch has arrested three persons in connection with availing loans against spurious gold from two cooperative banks in Keecherry and Arayankavu in Kerala, reports Hindu.
The accused have been traced to their hideouts in Alappuzha and Kottayam districts.
According to officials, the accused had pledged about 24 kg of gold and swindled about Rs.5.10 crore from the Keecherry Service Cooperative Bank and the Aryankavu Yogakshemam Loans limited.
The fraud was carried out with the help of the employees in these financial institutions,” the officials said.The fraud came to light a couple of months ago when some of the pledged ornaments accumulated rust while in the locker.