Sixty five special police teams constituted in the district to investigate cases filed by borrowers in firms that closed shop without redeeming their borrowed jewels had recovered jewels worth Rs. 60 crore from 40 branches so far.

These teams had verified financial records in 75 branches of three firms in the district and assessed total jewels re-pledged in various private, nationalised and cooperative banks in the district. The first firm had re-pledged jewels for Rs.8.5 crore, the second firm re-pledged jewels for Rs.117 crore, and the third firm Rs.4.5 crore.

The process would be intensified to recover jewels re-pledged by other branches and to hand over redeemed jewels to the borrowers. Approximately, 70,000 borrowers had pledged their jewels in branches of just the three firms.

Already, one of the three firms had given back the borrowed jewels to 3,000 persons. Still, 1,500 persons did not get back their jewels. Process was on to recover their jewels also, said the investigating officers adding that distribution of jewels would take place within few days.

The Theni-based gold firm that had 30 branches in Theni, Dindigul and Madurai districts had offered gold loan to 60,000 borrowers and re-pledged their jewels in other private finance companies for Rs.117 crore. All firms had re-pledged their jewels in other banks for higher amount.

The police had managed to settle the higher amount through seizure of immovable and movable properties of these gold firms.

Six gold firms had closed almost all its branches in Dindigul, Madurai and Theni districts between August and December last year leaving thousands of borrowers in the lurch. One person was arrested in this connection so far. Borrowers had thronged all police stations in the district and handed over petitions.