A courier operator and his UP-based associate allegedly ran a coordinated racket targeting gold traders by misusing the Value Payable Post (VPP) system, cheating victims of jewellery worth over Rs 70 lakh, police said.

The LT Marg police on Wednesday arrested Daya Shankar Sharma, 39, a resident of Kalbadevi, who worked with a courier firm before starting New Bright Courier in Kalbadevi. His associate, Avdhesh alias Avinash Goldy — a jeweller based in UP — is on the run. Police said Sharma used his job at the courier firm to build contacts among jewellers and later targeted them.