Prima facie, it appears that the person who took loan by pledging fake gold jewellery describing it as genuine gold jewellery has deceived your father in a dishonest and fraudulent manner for taking the loan amount against such jewellery. It appears to be an offence of cheating. In fact, Illustration (e) to Section 415 of the Indian Penal Code, which defines cheating, gives a similar example:
“A, by pledging as diamonds articles which he knows are not diamonds, intentionally deceives Z, and thereby dishonestly induces Z to lend money. A cheats.”
If the police is refusing to register an offence of cheating, you may approach the Magistrate court under Section 156(3) of the Criminal Procedure Code seeking direction to the police to conduct investigation in the case, or alternatively you may have to file a private complaint in the court under Section 190 Cr.P.C.
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
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