What Charges Have Been Filed in the Fake Gold Loan Case?
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Synopsis
The Enforcement Directorate has taken significant legal action against R.M. Manjunatha Gowda for his role in a massive gold loan scam. This case involves fraudulent loans exceeding Rs 62 crore and raises serious questions regarding financial governance in cooperative banks.
Key Takeaways
- The Enforcement Directorate has filed a charge sheet against R.M. Manjunatha Gowda.
- Allegations include disbursing loans based on fake gold.
- Loans totaling over Rs 62 crore were involved in the scam.
- Properties worth Rs 13.91 crore have been attached by the ED.
- The case underscores the need for stricter oversight in cooperative banking.
Bengaluru, June 10 (NationPress) The Enforcement Directorate's (ED) Bengaluru Zonal Office has lodged a charge sheet under the Prevention of Money Laundering Act (PMLA), 2002, against R.M. Manjunatha Gowda, former President of the Shivamoga District Co-operative Central Bank and Karnataka State Co-operative Apex Bank, with the Supreme Court on June 6, as per the ED's official statement.
The ED's investigation commenced following an FIR filed by the Shivamogga Police pertaining to a gold loan scam at the Shivamogga District Central Co-operative Bank City Branch amounting to Rs 62.77 crore. Additionally, another FIR was registered by the Lokayukta Police against Manjunatha Gowda for holding disproportionate assets worth Rs 3.95 crore, according to ED officials.
Previously, on April 9, the ED apprehended Manjunatha Gowda for his involvement in money laundering activities.
Currently, he remains in judicial custody.
In relation to this case, the ED has promptly attached movable and immovable assets valued at approximately Rs 13.91 crore belonging to both Manjunatha Gowda and his wife, in accordance with the PMLA, 2002.
Further inquiries are ongoing, as stated by the ED.
This fraudulent activity came to light in July 2014 after a complaint was filed by the bank's general manager.
The Doddapet Police in Shivamogga arrested the key accused, Manjunath Gowda, at that time.
Investigations revealed that the accused had disbursed loans against fake gold, and in several instances, without any gold being mortgaged for the loans.
Gowda, along with six other board members, was disqualified in 2006 due to allegations of financial misconduct.
Between 2004 and 2014, a total of Rs 62 crore in gold loans was granted.
During this timeframe, Rs 5.5 crore in loans were provided against actual gold in 144 cases, while Rs 40.57 crore in loans were issued against fake gold in 185 cases, and Rs 17.13 crore in loans were given without any collateral.
Sources indicate that Manjunath Gowda is a close associate of Karnataka Deputy Chief Minister D.K. Shivakumar.
The ED's investigations have established that Gowda is implicated in the money laundering offense, highlighting that the case involves the issuance of over Rs 62 crore in loans based on fraudulent gold jewelry as collateral at the Shivamogga District Co-operative Central Bank.
The ED's earlier statement noted that extensive misappropriation of funds occurred at the City branch, primarily orchestrated by branch manager B. Shobha under the direction of Manjunatha Gowda.
As per the chargesheet filed by the Lokayukta Police, Shobha, in collusion with other co-accused, diverted a significant sum of bank funds, nearly Rs 62.77 crore.
The ED reported that the modus operandi involved creating fraudulent gold loan accounts without the knowledge of the actual account holders, utilizing fake, forged, and fabricated documents.
Point of View
It is imperative to recognize the gravity of this case. The investigation into R.M. Manjunatha Gowda's actions not only highlights the vulnerabilities within our financial systems but also showcases the importance of accountability in governance. The implications of this case extend beyond individual culpability, raising broader concerns about the regulatory frameworks governing cooperative banks in India.
NationPress
10/06/2025
Frequently Asked Questions
What is the main allegation against R.M. Manjunatha Gowda?
The main allegation is his involvement in a gold loan scam amounting to over Rs 62 crore, which involved issuing loans against fake gold and in some cases, without any gold collateral.
When was the charge sheet filed?
The charge sheet was filed by the Enforcement Directorate on June 6, 2023.
What actions has the ED taken regarding this case?
The ED has filed a charge sheet, arrested Manjunatha Gowda, and attached properties worth Rs 13.91 crore.
What is the significance of the PMLA in this case?
The Prevention of Money Laundering Act (PMLA) is being utilized to prosecute those involved in money laundering, including the attachment of properties linked to the alleged crime.
How did the scam come to light?
The scam was uncovered in July 2014 when the bank's general manager reported suspicious activities to the police.
