ED Raids Multiple Locations in Karnataka's Fake Gold Loan Investigation
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Synopsis
The Enforcement Directorate (ED) has launched extensive searches in Shivamogga and Bengaluru related to a significant fake gold loan case, uncovering fraudulent activities linked to the Shivamogga DCC Bank. The investigation reveals disbursements exceeding Rs 62 crore against counterfeit gold jewelry.
Key Takeaways
- ED conducts raids in multiple locations.
- Focus on Shivamogga DCC Bank fraud.
- Over Rs 62 crore disbursed against fake gold.
- Key suspects include R. N. Manjunath Gowda.
- Investigations ongoing with potential political ties.
Bengaluru, April 8 (NationPress) The Enforcement Directorate (ED) executed searches at over eight sites in Shivamogga and Bengaluru, Karnataka, related to the fake gold loan scandal, according to sources on Tuesday.
The investigation pertains to the issuance of more than Rs 62 crore in loans backed by counterfeit gold jewelry at the Shivamogga District Cooperative Central (DCC) Bank.
As per sources, ED officials targeted the homes of a former female manager of the Shivamogga DCC Bank and the driver of the previous bank president.
Raids also took place at the residence and workplace of the current manager of the Shivamogga DCC Bank.
Additionally, the ED conducted operations in Bengaluru and interrogated the former President of the DCC Bank, who was in charge during the time the fraud took place.
This former President was questioned at the Apex Bank Guest House by more than ten ED agents.
Simultaneous operations were reported at other sites in Bengaluru, according to the sources.
An official announcement from the ED regarding these raids is still pending.
The fraudulent scheme was uncovered in July 2014, following a complaint lodged by the bank's general manager with the police.
The Doddapet Police in Shivamogga apprehended the main suspect, R. N. Manjunath Gowda, the former President of the Shivamogga DCC Bank, in relation to the scam.
Investigations disclosed that the accused approved loans against fake gold, and in certain instances, without any gold being mortgaged.
Sources indicated that Manjunath Gowda is closely associated with Deputy Chief Minister D. K. Shivakumar.
Gowda and six other board members were disqualified in 2006 due to charges of financial misconduct.
It was revealed that between 2004 and 2014, gold loans amounting to Rs 62 crore were distributed. During this timeframe, Rs 5.5 crore in loans were secured against actual gold in 144 cases, Rs 40.57 crore in loans were issued against fake gold in 185 cases, and Rs 17.13 crore in loans were granted without any mortgage.
