Mumbai: Businessman from Kurla Duped of ₹1 Crore in Customs Gold Auction Scam; Case Registered Against Five

A businessman from Kurla was allegedly cheated of ₹1 crore by fraudsters who promised to provide gold at a lower rate from the Customs Department’s auctions. Following the complaint, the Vakola police have registered a case against five individuals under charges of fraud and criminal breach of trust. The investigation is currently underway.

According to the police, the complainant, Imtiaz Sheikh (44), runs a mutton distribution business. In September 2023, he came in contact with two of the accused, who claimed they could procure auctioned gold from the Customs Department at discounted rates. They further convinced him that several high-profile individuals invest in such deals.

Initially, Sheikh tested their claims by making three small transactions, during which the accused provided gold at a lower rate. Gaining his trust, they then lured him into a bigger deal.

Later in September, one of the accused informed Sheikh about a six-kilogram gold parcel supposedly received from the Customs Department. He was told that a significant profit could be made if he invested ₹1 crore in cash. However, Sheikh was unable to arrange the money immediately.

Determined to seize the opportunity, he later collected ₹1 crore by borrowing from acquaintances, customers, and using his business savings of ₹55 lakh. In October, he handed over the money to the accused.

In the following weeks, Sheikh repeatedly contacted them, but they kept assuring him that his investment was being processed through the Customs Department. However, despite waiting for months, neither the gold nor the money was returned. Eventually, when the accused stopped responding, Sheikh approached the Khar police station to file a complaint.

Based on his statement, the Vakola police have booked the five accused under IPC Sections 420 (cheating), 406 (criminal breach of trust), and 34 (common intention). The police have recorded a detailed statement from the complainant, and all the accused have been identified. Further investigations are ongoing.