On Tuesday, a large group of men and women from Elumalai thronged the District Police Office with a complaint that a pawn broker shop functioning in their locality had downed the shutters. 

The people complained that several of them, mostly belonging to lower economic strata, had pledged their gold jewellery and many of them had paid back the loan amount. However, they were not able to get back their valuables given as collateral. 

Those managing the pawn shop were earlier dilly-dallying with some excuse or other for not returning the gold.  

However, a few weeks back, they closed down the shop and disappeared.  

The police said that 59 persons had pledged around 48 sovereigns of gold.  

Superintendent of Police N. Devanathan has ordered an enquiry into the complaint. The initial probe revealed that the pawn broker, who had his headquarters in Theni, had opened a branch in Elumalai. The gold jewellery pledged by the people were pledged again by the pawn broker in other financial insitutions.  

In another incident, Jeyapandi of Saptur had pledged 28 soveriengs of gold with another pawn broker in Peraiyur in April 2025. However, when he approached them later with money for closure of the loan, those operating it refused.  

Later, she learnt that the pawn broker shop did not have proper licensing and they had cheated several other persons too.  

One of the women said that she could not visit the banks for her urgent money needs as she was away on work during the bank working time.  

Peraiyur police have registered a case of cheating and criminal breach of trust in early June.  

In another incident, a family of four, that was running a chit business, has cheated several persons in Avaniyapuram by taking gold jewellery.  

A few people approached the City Police Office with the petition that Kavitha and her husband Thennarasu were running chit fund for several years.  

Meanwhile, the woman had asked one Sanjeevi to lend gold chains to her as she was going to seek hand of a girl for son. While the gold ornaments weighing some 12 sovereigns were taken on June 2, the woman returned a part on June 10 only after the complainant insisted its return. 

Later, he found that the couple, along with their two children, had fled the house, without informing anyone.  

Only later, local people realised that the couple had taken gold jewellery from each one of them with the same excuse. Since, Kavitha had told them not to reveal about it, they had kept silent until they realised they were cheated.  

Madurai City police are investigating.

Police have cautioned the people to be wary about such fraudsters. They should only make use of banks, financial institutions or licensed brokers.

Published - July 10, 2026 09:22 pm IST