Financial Scandal Unveiled: Ex-Bank Chairman Arrested in Rs 63 Crore Fraud

The Enforcement Directorate arrested R M Manjunatha Gowda, former chairman of a Karnataka-based cooperative bank, for financial irregularities worth Rs 63 crore. The arrest follows raids and a Lokayukta Police chargesheet revealing fraudulent activities, including fake gold loan accounts orchestrated by branch manager B Shobha under Gowda's direction.

The Enforcement Directorate (ED) arrested R M Manjunatha Gowda, former chairman of a Karnataka-based cooperative bank, for alleged financial irregularities totaling Rs 63 crore. The arrest, under the Prevention of Money Laundering Act, followed raids in the bank's Bengaluru and Shivamogga branches, exposing serious financial misconduct.

The ED's investigations revealed that B Shobha, the branch manager, orchestrated large-scale fund misappropriation at the Shimoga District Co-Operative Central Bank, City Branch. The deception was executed by opening fraudulent gold loan accounts without account holders' knowledge, using fabricated documents, and channeling the 'proceeds of crime' to Gowda.

R M Manjunatha Gowda allegedly utilized the illicit funds to acquire various properties, as indicated by a chargesheet from the Lokayukta Police. The chargesheet also highlighted Gowda's possession of assets disproportionate to his known income sources. Efforts to reach Gowda and Shobha for comments on the charges have been unsuccessful.

(With inputs from agencies.)