Bengaluru, June 10: The Bengaluru Zonal Office of the Enforcement Directorate (ED) filed a charge sheet under the Prevention of Money Laundering Act (PMLA), 2002, against R.M. Manjunatha Gowda, former President of Shivamoga District Co-operative Central Bank and Karnataka State Co-operative Apex Bank, in the Supreme Court on June 6, the ED said in an official statement.
The investigation was launched following an FIR registered by Shivamogga Police concerning a gold loan scam at the Shivamogga District Central Co-operative Bank’s City Branch involving Rs 62.77 crore. Additionally, an FIR was filed by the Lokayukta Police against Manjunatha Gowda for possessing assets disproportionate to his known income, estimated at Rs 3.95 crore, ED officials said.
Manjunatha Gowda was arrested by the ED on April 9 for money laundering offenses and is currently in judicial custody.
Under the PMLA provisions, the ED has attached movable and immovable properties worth approximately Rs 13.91 crore belonging to Gowda and his wife. Further investigation into the case is ongoing.
The scam surfaced in July 2014 after the bank’s general manager filed a police complaint. Subsequently, the Doddapet Police in Shivamogga arrested Gowda, the prime accused.
Investigations revealed that loans were disbursed against fake gold or, in some cases, without any gold as collateral. Gowda and six other administrative board members were disqualified from their posts in 2006 due to financial irregularities.
Between 2004 and 2014, gold loans totaling Rs 62 crore were disbursed: Rs 5.5 crore against genuine gold in 144 cases, Rs 40.57 crore against fake gold in 185 cases, and Rs 17.13 crore without any collateral.
Sources say Manjunatha Gowda is closely associated with Karnataka Deputy Chief Minister D.K. Shivakumar.
The ED found Gowda guilty of money laundering linked to the disbursal of over Rs 62 crore in loans using fake gold jewelry as security at the Shivamogga District Co-operative Central Bank.
According to the ED, the large-scale fund misappropriation at the bank’s City branch was primarily orchestrated by branch manager B. Shobha under Gowda’s direction.
The charge sheet filed by Lokayukta Police states that Shobha, in conspiracy with others, diverted nearly Rs 62.77 crore of bank funds.
The fraudulent scheme involved opening fake gold loan accounts without the knowledge of the actual account holders, using fabricated and forged documents, the ED said.
