BENGALURU: The Directorate of Enforcement (ED), Bengaluru, arrested the former chairman of Shivamogga District Co-operative Bank under the Prevention of Money Laundering Act (PMLA), 2002, on Wednesday.
Accused RM Manjunatha Gowda was produced before a special court which remanded him to ED custody for 14 days.
On April 8, search operations on various locations across Shivamogga and Bengaluru, including the office of the Shivamogga DCC Bank were carried out under Section 17 of PMLA, in connection with a gold loan scam and diversion of funds.
In an official release, the ED stated that various pieces of evidence including digital evidence have been seized during the searches. “The investigation has revealed that large-scale misappropriation of funds took place at the Shivamogga DCC Bank, city branch, which was orchestrated primarily by the branch manager, B Shobha, on the instructions of Gowda.
As per the chargesheet filed by the Lokayukta police, Shobha, in conspiracy with other co-accused, diverted a significant amount of bank funds, around Rs 62.77 crore,” stated the ED.
“The investigation revealed that proceeds of crime generated by Sobha in conspiracy with other co-accused were laundered and also handed over to Gowda. He had acquired various movable and immovable properties and was found to be in possession of various properties acquired from the proceeds of crime,” it added.