As per the charge-sheet filed by Karnataka Police, Ms. B. Shobha, Branch Manager in conspiracy with other co-accused diverted a significant amount of bank funds, totaling Rs. 62.77 Crore (approx.)
FinTech BizNews Service
Mumbai, June 7, 2025: Directorate of Enforcement (ED), Bengaluru Zonal Office has provisionally attached immovable and movable properties having present market value worth Rs. 13.91 Crore belonging to former Chairman of Shimoga DCC Bank, R M Manjunatha Gowda & his wife, under the provisions of Prevention of Money Laundering Act (PMLA), 2002 in an investigation related to Gold loan scam at Shimoga District Co-Operative Central Bank, City branch, as per a press release issued by the ED.
As per the charge-sheet filed by Karnataka Police, Ms. B. Shobha, Branch Manager in conspiracy with other co-accused diverted a significant amount of bank funds, totalling Rs. 62.77 Crore (approx.). The modus operandi involved opening fraudulent gold loan accounts without the knowledge of the individual account holders, utilizing fake, fabricated, and forged documents.
ED investigation revealed that large-scale misappropriation of funds took place at the Shimoga District Co-Operative Central Bank, City branch which was orchestrated primarily by the branch manager, Ms B. Shobha on the instructions of R M Manjunatha Gowda. ED investigation revealed that Proceeds of Crime (POC) generated by Ms. B. Sobha in conspiracy with other co-accused from the commission of schedule offense were laundered and also handed over to R M Manjunatha Gowda. He had acquired various movable and immovable properties and was found to be in possession of various such properties acquired from POC generated from schedule offense.
As per charge-sheet filed by the Lokayuktha Police, he was also found to be in possession of assets disproportionate to his known sources of income. Further, during the search operations conducted on 08.04.2025 on various locations across Shimoga and Bengaluru, including the office of the Shimoga DCC Bank, City Branch, various evidences including digital evidences and around 2.5 kilograms of Gold jewellery was seized during the searches. ED also arrested R M Manjunatha Gowda on 09.04.2025 for being found involved in the offense of money laundering. Currently, he is under judicial custody. Further investigation is under progress.
