Police have arrested the prime suspect in a major gold fraud case involving traders at Lahore’s Ichhra gold market and recovered gold, cash, vehicles and other valuables worth more than Rs150 million, officials said on Monday.

The suspect, identified as Sheikh Wasim Akhtar, was taken into custody from Islamabad after going into hiding weeks ago.

Police said at least 20 cases have been registered against him in connection with large-scale fraud against jewellers in the area.

According to investigators, the accused allegedly obtained gold worth crores of rupees from multiple shopkeepers and then disappeared.

During the operation, police recovered more than Rs150 million worth of assets, including gold, cash, vehicles and other valuables. The recovered items have been returned to the affected traders.

Traders said initial fears suggested the fraud involved more than 20 kilograms of gold. However, verification so far has confirmed eight kilograms. Affected shopkeepers said they have received around 50 per cent recovery of their losses.

Police said the breakthrough came after tracing the suspect’s mobile phone activity.

Investigators found that the accused had sold his old phones, purchased new handsets and activated SIM cards registered in the name of a woman, which eventually led police to his location.

The case first surfaced in December when traders at Latif Centre, a major jewellery hub on Ferozepur Road, reported that a long-time dealer had vanished after taking gold from several shopkeepers.

A video circulating on social media at the time showed a man allegedly leaving the market with a bag claimed to contain gold worth nearly Rs1 billion.

An FIR was initially registered under Section 406 of the Pakistan Penal Code on the complaint of trader Ahmed Siddiqui, who said he had entrusted eight gold bangles weighing 588 grams to the suspect on December 4.

When the gold was not returned, and the suspect became unreachable, further complaints emerged from other traders.

Police said further investigations are underway, and additional recoveries and arrests are expected as the probe continues.