The alleged Laxmi Nagar gold scam has prompted an Economic Offences Wing inquiry after a jeweller in East Delhi was accused of taking cash and old gold from around 200 people and shutting his shop. Police have received about 20 complaints so far, while the total loss is yet to be established.
The jeweller, identified in the report as A. Gaffar Jewellers, operated in the J Extension area of Laxmi Nagar. Victims alleged that the business offered to exchange old gold for new jewellery without charging making fees. The jeweller had also reportedly operated a kitty scheme under which customers deposited a fixed amount every month in return for jewellery valued above their contributions after the scheme period ended.
According to the complaints described in the report, several customers later handed over their old ornaments under the exchange offer. Some people allegedly received interest initially, which increased their confidence in the schemes. About a week before the complaints were reported, customers arrived at the shop and found it locked. They were then told by people in the area that the jeweller had sold the shop and his house and left.
Victims gathered outside the premises on Sunday evening. One woman alleged that the jeweller had taken about 12 tolas of her gold. Other women reportedly claimed to have handed over between 12 and 15 tolas of old jewellery. The victims estimated that more than Rs 50 crore in cash and gold may have been involved, but also said the actual value could be higher.
The figure has not been confirmed by police. DCP East District Rajiv Kumar said complaints had been collected and the matter had been sent to the Economic Offences Wing for investigation. He said about 20 complaints had been received at that point. The police will assess the total amount of money and quantity of gold after receiving and examining all complaints.
The case highlights the difficulty of establishing the scale of a suspected financial fraud when transactions involve a combination of cash, jewellery and informal customer schemes. The final number of affected people and the value of the alleged losses will depend on complaint records, transaction details and evidence collected during the investigation.
For residents who deposited money or handed over jewellery, the immediate issue is documentation: police must reconcile individual complaints with records of payments, receipts, gold deposits and promised replacements. The EOW inquiry is expected to determine the extent of the alleged fraud and trace the jeweller’s transactions and assets. The investigation remains ongoing, and the allegations have not yet been proved in court.
