Concerns over alleged irregularities at private gold finance companies have resurfaced once again in Kanniyakumari district, following the incident that happened a couple of weeks ago in Thengapattinam, where several customers allegedly faced difficulties in retrieving their pledged gold jewellery.
According to Kanniyakumari District Crime Branch (DCB) police, a case was registered a couple of weeks ago based on the complaint by a woman from Arasakulam near Thengapattinam. She had pledged around 16 sovereigns of gold jewellery at a private gold finance firm in Thengapattinam on March, 5, 2025 for a loan of ₹7 lakh.
However, in November 2025, when she visited the branch to retrieve the jewellery, she allegedly discovered that it had been repledged for an additional ₹4 lakh extra during the same month in which she had originally pledged them.
When she questioned the branch manager about it, she was reportedly told that employees who had previously worked at the firm were responsible for the transaction. However, when she subsequently contacted Bindhu, the former manager, she allegedly refused to return the cash. Following this, a case has been registered at Pudukkadai police station.
It is pertinent to note here that the private gold finance firm involved has several hundred branches across the country. As per the information provided by DCB police, apart from the customer from Arasakulam, 17 customers were affected in the same branch, and several among them had paid an extra to retrieve their jewellery with the belief the firm would give back the jewel along with the extra paid cash. However, they have not received both the extra cash and several sovereigns of gold jewellery. The firm delayed the repayment almost for a year.
Following the intervention of the police and the court, the company had returned the additional amounts collected from the customers and handed over the pending gold jewellery, a few days ago, the police added.
The incident has raised concerns over the functioning of private gold finance companies in the district. Some of these companies, particularly those functioning near coastal areas of the district, reportedly offer higher loan amounts against pledged jewelleries than public sector banks and other private banks, making them an attractive option for customers seeking immediate financial assistance.
However, allegations of unauthorised pledging, delays in returning ornaments even after loan repayment and in some cases alleged disappearance of pledged jewellery have continued to surface in the district. These incidents underline the need for greater public awareness about the risks involved in dealing with private gold finance companies and stricter enforcement to safeguard customer’s assets.
Kanniyakumari district Superintendent of Police Anshul Nagar told The Hindu that “To tackle fraudulent practices by private finance companies—such as unauthorized pledging, rerouting of customer jewellery, and intentional delays in returning gold, the Kanniyakumari District Police have stepped up public awareness campaigns and regulatory oversight through coordinated station-level outreach.”
He added that citizens are continually cautioned to verify that financial institutions hold valid licenses, insist on itemized computer-generated receipts detailing exact ornament weights, and immediately report any suspicious reluctance by staff to return cleared collateral.
Highlighting this strict approach, the District Crime Branch and local stations like Karungal have launched crackdowns and registered criminal cases against those involved in such offences, Mr. Nagar noted.
Published - October 22, 2026 08:53 pm IST