The Enforcement Directorate (ED) has arrested R M Manjunatha Gowda, the former chairman of the Shivamogga District Co-Operative Central (DCC) Bank, in connection with a massive fake gold loan and fund misappropriation scam.
The arrest follows a series of raids conducted by ED officials from the Bengaluru Zonal Office across multiple locations in Shivamogga and Bengaluru.
Gowda was produced before a special court, which remanded him to 14 days in ED custody for further interrogation. The case revolves around allegations of large-scale financial irregularities at the bank’s City Branch, involving the fraudulent sanctioning of gold loans and laundering of public funds.
ALSO READ: Call for Cyber Experts: Join FCRF Academy as Trainers and Course Creators
According to ED officials, the investigation uncovered substantial evidence, including digital records, pointing to the diversion of funds to the tune of Rs 62.77 crore.
The agency stated that the scam was orchestrated primarily by branch manager B Shobha, allegedly acting on the instructions of Gowda.
As per the chargesheet filed by the Lokayukta police, Shobha and her co-accused opened numerous bogus gold loan accounts using fake, forged, and fabricated documents—without the knowledge or consent of the supposed account holders. The proceeds generated through this fraudulent activity were reportedly laundered and handed over to Gowda.
The ED suspects that Gowda used the illicit gains to acquire various movable and immovable properties, all of which are now under scrutiny as part of the money laundering probe.