The Enforcement Directorate (ED) Wednesday arrested the previous chairman of Shivamogga District Co-Operative Central Financial institution in a case of an alleged faux gold mortgage and large-scale misappropriation of funds.
After the officers of ED’s Bengaluru Zonal Workplace arrested R M Manjunatha Gowda, they produced him earlier than the courtroom. The courtroom despatched Gowda in ED custody for 14 days.
The arrest comes after ED performed search operations in numerous places throughout Shivamogga and Bengaluru, together with the Shimoga DCC Financial institution, Metropolis Department workplace. The raids have been performed in reference to the alleged gold mortgage rip-off, and the next diversion of funds. The Central company stated proof, together with digital, was seized through the searches.
ED stated the probe revealed {that a} large-scale misappropriation of funds befell on the Shivamogga District Co-Operative Central Financial institution, Metropolis department, which was orchestrated primarily by department supervisor B Shobha on the directions of Gowda.
As per the chargesheet filed by the Lokayuktha police, Sobha allegedly conspired with different co-accused to divert Rs. 62.77 crore. The chargesheet stated their modus operandi concerned opening fraudulent gold mortgage accounts with out the data of the person account holders, utilising faux, fabricated, and cast paperwork.
The Lokayuktha police chargesheet stated the Proceeds of Crime (POC) generated by B Sobha in conspiracy with different co-accused have been laundered, and handed over to Gowda. He allegedly acquired numerous movable and immovable properties, and owned numerous such properties acquired from POC generated from the reported offence.
As per the chargesheet filed by the Lokayuktha police, he was additionally discovered to have property disproportionate to his identified sources of revenue.
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