SHIVAMOGGA: The Directorate of Enforcement(ED), Bengaluru zonal office, has filed a prosecution complaint under the Prevention of Money Laundering Act (PMLA), 2002, against RM Manjunatha Gowda, president, Shimoga District Central Co-operative (SDCC) Bank.
The complaint was filed before the Special Court. They initiated the probe based on two FIRs— one registered by Shivamogga Police in connection with a gold loan fraud worth Rs 62.77 crore, and another by the Karnataka Lokayukta Police over allegations of disproportionate assets valued at Rs 3.95 crore.
Gowda was arrested by the ED on April 9 in connection with the money laundering charges and is currently in judicial custody. The agency has provisionally attached movable and immovable assets worth Rs 13.91 crore, belonging to Gowda, wife, under PMLA provisions.
The modus operandi in the alleged scam involved opening fraudulent gold loan accounts without the knowledge of individual account holders, using forged documents. Probe revealed that large-scale misappropriation of funds took place at the bank’s city branch, primarily orchestrated by the branch manager, B Shobha, allegedly under the instructions of Gowda.
The proceeds of crime generated by Shobha, in conspiracy with the other accused, were laundered and handed over to Gowda. He had allegedly acquired various movable and immovable properties.