Hyderabad Jewellery Businessman Accused of Major Gold Fraud
The Central Crime Station (CCS) in Hyderabad has launched a major manhunt after registering a significant cheating case against a city-based gold businessman. The accused, Sandeep Manna (37), proprietor of Shri Bhagyalaxmi Manufacturing Jewellery Works located in Ghansi Bazar, is alleged to have fled after collecting nearly five kilograms of gold and approximately Rs 27 lakh in cash from numerous local goldsmiths.
The Long-Standing Trust and the Initial Deal
According to the First Information Report (FIR), the complaint was filed by Kesto Mandal (48), a goldsmith from Laldarwaza. Mandal stated that he first met Sandeep Manna nearly thirty years ago while both were working at a jewellery store in Abids. Their professional relationship continued for decades, building a foundation of trust.
In 2016, Manna announced plans to start his own jewellery manufacturing workshop. He invited former co-workers, including Mandal, to invest in his venture by depositing gold with him. In return, he promised attractive financial returns. Relying on their long association, Mandal handed over 400 grams of his family's gold to Manna.
For several years, Mandal received periodic interest payments, which continued until March 2020. That same month, a formal agreement was signed between them, assuring that the principal amount of 400 grams of gold would be returned to Mandal by January 2025.
Intensified Collections and the Final Scheme
Investigators revealed that Manna significantly increased his collection efforts in November 2025. He approached Mandal again, this time seeking an additional 500 grams of gold and a hand loan of Rs 27 lakh. To secure this substantial sum, Manna issued two post-dated cheques to Mandal, promising to clear all outstanding dues in full by December 13, 2025.
Simultaneously, Manna floated a new 'gold chit' scheme. This scheme required participants to deposit two grams of gold every month. In return, they were promised a payout of 30 grams after one year. Convinced by the proposal, Mandal enrolled in three such chit schemes.
The Discovery and the Scale of the Fraud
The scheme unraveled on November 25, 2025, when Mandal visited Manna's workshop at Ghansi Bazar. He found the establishment shut and locked. All attempts to contact Manna and his wife, Arpita, failed as their phones remained unanswered.
Further enquiries revealed that Manna's three managers, identified as Tapan, Aditya, and Jit—all originally from West Bengal—had also vacated their homes in Hyderabad and left the city. Mandal's investigation into the matter uncovered a shocking pattern: he was not the only victim.
"Subsequent enquiries revealed that at least 30 goldsmiths had given an estimated 5 kg of gold to Manna as investments," Mandal alleged in his police complaint. This indicated a large, coordinated fraud targeting the close-knit goldsmith community in Hyderabad's old city areas.
Legal Action and Police Investigation
Based on Kesto Mandal's detailed complaint, the CCS police formally registered a case on January 8. Sandeep Manna and his aides have been booked under serious sections of the law:
- Section 318(4) of the Bharatiya Nyaya Sanhita for cheating and dishonestly inducing delivery of property.
- Section 61(2) of the Bharatiya Nyaya Sanhita for criminal conspiracy.
- Section 5 of the Telangana Protection of Depositors of Financial Establishments Act, a stringent law designed to protect investors from fraudulent financial establishments.
The Hyderabad police have launched a comprehensive manhunt to locate and apprehend the absconding accused. The case highlights the vulnerabilities within informal investment schemes, even those operating on long-standing personal trust within traditional business communities.
