ED nabs Shivamogga DCC Bank chief for Rs 62- cr fake gold scandal

Shivamogga: The Enforcement Directorate (ED) has arrested R M Manjunath Gowda, former MLA and president of the Shivamogga District Cooperative Central (DCC) Bank. The arrest follows a meticulous investigation into a Rs. 62 crore scam involving loans issued against counterfeit gold, a scheme that has rocked the region’s cooperative banking sector.

The ED’s move came swiftly after a series of raids on Tuesday, targeting Gowda’s residence and office, as well as properties linked to other bank staff. Officials detained Gowda that day, whisking him to Bengaluru’s Apex Bank guesthouse in Chamarajapet for questioning.

After intense interrogation, he was formally arrested and presented before a Bengaluru Court, which granted the ED 14 days of custody. Noting Gowda’s health issues, the court mandated medical support and allowed him 30 minutes daily to consult with his lawyers.

This high-profile bust traces back to 2014, when the scam first surfaced at the DCC Bank’s Gandhi Bazaar branch in Shivamogga. Thieves had pledged fake gold to secure massive loans, triggering a police case at Doddapete station and a subsequent chargesheet.