Karnataka: ED Detains Mastermind in Fake Gold Loan Scandal
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Synopsis
In a significant crackdown, the Enforcement Directorate has arrested R. M. Manjunatha Gowda, former Chairman of Shivamoga DCC Bank, under the Prevention of Money Laundering Act related to a fake gold loan scheme. The case involves fraudulent loans exceeding Rs 62 crore, utilizing fake gold as collateral.
Key Takeaways
- R. M. Manjunatha Gowda arrested for money laundering.
- Involvement in a scam exceeding Rs 62 crore.
- Fake gold used as collateral for loans.
- Investigation ongoing with multiple searches conducted.
- Previous disqualification of Gowda and associates due to financial misconduct.
Bengaluru, April 9 (NationPress) The Enforcement Directorate (ED), Bengaluru Zonal Office, has apprehended former Chairman of Shivamoga DCC Bank, R. M. Manjunatha Gowda, under the provisions of the Prevention of Money Laundering Act (PMLA) on Wednesday concerning the fake gold loan case.
The official statement from the ED indicated that Gowda has been implicated in the crime of money laundering, revealing that the case involves the distribution of over Rs 62 crore in loans by accepting fake gold jewellery as collateral at the Shivamogga District Co-operative Central (DCC) Bank.
Following his arrest, he was presented before the Special Court, which subsequently remanded him to the ED's custody for a period of 14 days.
“The investigation has uncovered that extensive misappropriation of funds occurred at the Shivamogga District Co-operative Central Bank, City branch, primarily orchestrated by branch manager, B. Shobha, under the directives of Manjunatha Gowda,” the ED stated.
The investigative agency revealed that according to the chargesheet filed by Lokayuktha Police, Sobha, in collusion with other co-accused, misappropriated a substantial amount of bank funds, amounting to approximately Rs 62.77 crore.
The ED noted that the modus operandi included the establishment of fraudulent gold loan accounts without the knowledge of the actual account holders, utilizing fake, fabricated, and forged documents.
The central investigation agency disclosed that the Proceeds of Crime (POC) generated by B. Sobha, in conspiracy with other co-accused, were laundered and subsequently handed over to Manjunatha Gowda.
It was mentioned that he had acquired various movable and immovable assets, found to be sourced from the POC generated through this offense.
“As indicated in the chargesheet submitted by the Lokayuktha Police, he was also discovered to possess assets disproportionate to his known income sources. Hence, Manjunatha Gowda was arrested under Section 19 of the PMLA,” the ED affirmed.
Further investigations are currently underway.
On April 8, search operations were executed across various locations in Shivamogga and Bengaluru, including the office of the Shivamogga DCC Bank, City Branch, concerning the gold loan scam and funds diversion.
Numerous pieces of evidence, including digital evidence, have been confiscated during these searches.
The scam was initially uncovered in July 2014, following a complaint lodged by the bank's general manager.
The Doddapet Police in Shivamogga apprehended the primary accused, Manjunath Gowda, in relation to the scam at that time.
Investigations revealed that the accused had disbursed loans secured against fake gold, and in some instances, with no gold pledged against the loan.
Gowda, along with six other administrative board members, faced disqualification in 2006 due to charges of financial irregularities.
Furthermore, it was found that between 2004 and 2014, gold loans totaling Rs 62 crore were distributed. During this period, Rs 5.5 crore in loans were issued against actual gold in 144 cases, Rs 40.57 crore against fake gold in 185 cases, and Rs 17.13 crore against loans with no mortgage.
Sources revealed that Manjunath Gowda maintains close ties with Deputy Chief Minister D. K. Shivakumar.
