Police said that the main accused, Balaji, posed an IRS officer to victims and deceived them by claiming that he has a huge stock of gold seized during department raids which he sells at cheaper rates.
Explaining his modus operandi, an officer told DTNext that Balaji would initially receive Rs 10 lakh in return for gold worth Rs 12 lakh. After gaining their confidence with similar smaller transactions, he would later ask them invest more in gold and demand a huge sum. Believing him, victim would pay several lakhs and even crores, but Balaji allegedly refused to give them the gold or reimburse the money paid.
Based on a complaint by one Praveen Alexander of Puducherry, Periamet police registered a case and arrested Balaji and his father, Thulasidas, a partner in crime. Police said that Balaji has cheated several people in the same manner and added that they anticipate more complaints in the following days.
Police said that Balaji has been leading a flamboyant life with the money he swindled from others. The father and son were remanded in judicial custody.
The victim Praveen, who lost Rs 50 lakh to Balaji, is said to be a kin of a politician in Puducherry. However, police did not reveal his background.