Representative image of an arrest.
Credit: iStock Photo
Shivamogga: Shivamogga DCC Bank chairman R M Manjunatha Gowda was arrested on Thursday by the Enforcement Directorate Bengaluru Zonal Office under PMLA for being found involved in money laundering
According to a press note issued by the ED, Gowda was produced before the Special Court, and custody of the accused was granted to ED for 14 days.
It further stated that Gowda was found to have many movable and immovable assets during the search operations conducted in Shivamogga and Bengaluru earlier this week.
Besides, Rs 62.77 crore funds had been diverted from the Gandhi Bazar branch of DCC bank by the then manager Shobha on the instructions by Gowda.
The modus operandi was that fraudulent gold loan accounts had been opened in the name of individual account holders without their knowledge through forged documents.
As per the chargesheet filed by Lokayukta police, Gowda was involved in misappropriation of funds in DCC bank. Further investigation is in progress.
Gowda is the head of the Malnad Area Development Board and a Congress leader.