Shivamogga, July 13 -- Police have busted a major fake gold loan racket in Shivamogga that allegedly cheated nationalised banks and cooperative institutions of lakhs of rupees by pledging counterfeit gold ornaments. Days after arresting one of the accused, Lokesh, Doddapete police have now apprehended the alleged kingpin, Rahul, while efforts are underway to trace the remaining accused.

According to police, Rahul and his brother Lokesh, both residents of Baggodi village in Thirthahalli taluk, masterminded the fraud by pledging fake gold ornaments to secure loans from banks and cooperative societies. Investigators said the ornaments contained only 10 to 30 per cent real gold coating, making them appear genuine during preliminary inspectio...