The incident is said to have occurred in the early hours yesterday, they said.
Police said the gang broke into the posh villa of 80-year-old Sahadevan and his wife Shanta (75).
While Sahadevan, who is bed-ridden, was already asleep, his wife was watching television when the gangsters entered.
About 30 sovereigns of gold, including those worn by her, were taken by the gang after gagging her. A mobile phone, Rs 10,000 and a digital camera were also taken by the gangsters, police said.
Sahadevan, who has a UK citizenship, had come to Kerala along with his wife a few months ago while their three children are settled abroad.
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