Pics: Ramesh Pandith
Daijiworld Media Network – Mangalore (NM)
Mangalore, Apr 5: Hundreds of customers, who deposited advance payments in gold protection scheme at Euro Gold, a jewellery store at Kankanady on Saturday April 5 claimed that they were duped after the store closed down some months back and its management became inaccessible.
Mohammed Zainuddhin, a resident of Bajal was one among the several customers who had gathered in front of the store on Saturday. The board of directors – Mohammed Shafeeq and Sajad are not reachable, said Ilyas Ahmed of Udupi, one of the customers who had made a deposit of Rs 34,000.
Zainuddhin said that the jewellery store was shut down in the month of December. The employees in the office which is located above the store said that the store was closed down for renovation. "It is almost five months now, but they are not responding," Ahmed added.
When a few among those who had deposited advance payments asked for the money back, cheques were issued to them. However, the cheques bounced when they tried to encash, one of the customers said. All those who were at the store had receipts of payment and cheques issued by the store.
It is said that nearly 100 customers had deposited at least Rs 40 lac under the gold protection scheme launched by Euro Gold. The official website of Euro Gold stated that the scheme enabled customers to make an advance payment for the gold they intended to buy. The customers thus had an advantage in that even if the gold price rose, they could purchase the gold at the booked rate and if the price went down on the day of purchase, they could purchase the gold at a lower rate.
Like Zainuddin, more than a hundred customers deposited advance payments when the price of the gold went down drastically. A M Abdul Rahiman of Manjanady made advance payment of Rs 35,000 when the price of the gold was Rs 2,555 on April, 2013.
The customers who gathered at the store on Saturday demanded that their money be given back by the store management or they would take legal recourse. They said they plan to file a police complaint by next week if the store fails to respond.