The Enforcement Directorate (ED) has arrested R M Manjunatha Gowda, former chairman of a Karnataka-based cooperative bank, in connection with a ₹63 crore fraud uncovered at the bank’s Shimoga City Branch. The arrest, made under the Prevention of Money Laundering Act (PMLA), came after multiple raids across Bengaluru and Shivamogga.
According to the ED, the financial irregularities were orchestrated through fake gold loan accounts and forged documents, primarily executed by the branch manager B Shobha under Gowda’s direction. The funds were allegedly siphoned off and laundered, with Gowda acquiring significant assets disproportionate to his known income.
Gowda was presented before a special PMLA court in Bengaluru and remanded to 14 days in ED custody. The central agency’s probe follows earlier findings by the Karnataka Lokayukta Police, which had already filed a chargesheet accusing Gowda and associates of criminal misconduct.
Investigations are ongoing to trace the full extent of the misappropriated funds and properties acquired using the illegal proceeds.
