Daijiworld Media Network - Bengaluru
Bengaluru, April 8: The Enforcement Directorate (ED) carried out raids at over eight locations in Shivamogga and Bengaluru, Karnataka, on Tuesday, in connection with a significant fake gold loan scam.
Sources confirmed that the raids were linked to a case involving the disbursal of more than Rs 62 crore in loans, using fake gold jewellery as collateral at the Shivamogga District Cooperative Central (DCC) Bank.
The ED officials reportedly raided the residences of a former woman manager of the Shivamogga DCC Bank, as well as the driver of the former bank president. The raids also extended to the residence and office of the current manager of the Shivamogga DCC Bank.
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In addition, sources confirmed that ED sleuths conducted raids in Bengaluru and questioned the former president of the DCC Bank, who was in charge when the scam took place.
The former president was reportedly questioned by over ten ED officers at the Apex Bank Guest House in Bengaluru. Simultaneous raids were conducted at other locations across the city, the sources added.
An official statement from the ED regarding the raids has yet to be issued.
The scam was initially uncovered in July 2014, after a complaint was filed by the bank’s general manager with the police. The Doddapet police in Shivamogga arrested the prime accused, R N Manjunath Gowda, the former president of Shivamogga DCC Bank, in connection with the case.
Investigations revealed that the accused had disbursed loans against fake gold, and in some instances, without any gold being used as collateral for the loans.
According to sources, Gowda is said to be a close confidant of Deputy Chief Minister D K Shivakumar. Furthermore, it was revealed that Gowda and six other administrative board members were disqualified in 2006 from their positions due to charges of financial irregularities.
Between 2004 and 2014, loans totalling Rs 62 crore were disbursed. Of this amount, Rs 5.5 crore was lent against actual gold in 144 cases, Rs 40.57 crore was lent against fake gold in 185 cases, and Rs 17.13 crore was disbursed with no gold mortgaged at all.
The investigation into the scam is ongoing, with more details expected as the ED continues its probe.