Balasore, Sept 5: A major counterfeit gold biscuit racket operating out of Nilagiri in Balasore district has been exposed, with links spreading across the state to districts like Ganjam and Kendrapara. Fraudsters reportedly duped unsuspecting victims by coating brass plates with a golden polish to mimic real gold biscuits, selling them at seemingly discounted rates.

According to police sources, the scam came to light after a Ganjam-based man, Krishna Nayak from Sebakanagar village under Baidyanathpur police limits, was defrauded of ₹16 lakh. Lured by the promise of cheap gold and dreams of quick riches, Nayak had borrowed the money and traveled to Nilagiri to make the purchase.

In Nilagiri, Bishnu Mohanty, a youth from the Banpur area, allegedly showed Krishna fake gold biscuits. To win his trust, Mohanty took ₹6,000 from Nayak to drill and test a few samples, which reportedly passed the purity test at a local jewelry shop. Convinced of the authenticity, Nayak returned with ₹16 lakh to complete the deal.

However, once the payment was made, Mohanty and his associates disappeared without delivering the promised gold. Nayak also alleged that he was physically assaulted during the incident.

Acting on the complaint, Nilagiri police launched a swift investigation. The main accused was arrested, with another accomplice nabbed from Kendrapara. The investigation has so far revealed the involvement of at least seven individuals—five from Nilagiri and two from Kendrapara.

On Thursday night, two more suspects were taken into custody. Police seized ₹68,000 in cash and a motorcycle used in the crime. Three others involved in the racket remain at large.

Authorities have confirmed that the fraudulent network has a wider reach across the state and are continuing their investigation to apprehend the remaining suspects.