Karnataka fake gold loan case: ED raids premises of Congress leader Manjunath Gowda

The Directorate of Enforcement (ED) on Thursday conducted raids on the premises of Congress leader and chairman of Shivamogga District Cooperative Central (DCC) Bank RM Manjunath Gowda as part of its investigation into alleged fake gold scam in the bank.

Gowda's residence in Sharavathi Nagar, Shivamogga and his farmhouse near Karakuchi in Tirthahalli taluk of the district are being raided by ED sleuths. The raids are still going on.

Earlier, ED had sought certain documents from the Shivamogga DCC Bank. Gowda who is also the State Coordinator of the KPCC (Karnataka Pradesh Congress Committee) Cooperative Division, was elected chairman of Shivamogga DCC Bank on September 28. He has been holding this post since 1997.


In 2014, Manjunath Gowda was prime accused in a fake gold loan case. The Shivamogga police had arrested Gowda in August 2014 in connection with issuance of loans against fake gold.

The probe claimed that the bank suffered a loss of Rs 62 crore due to irregularities. Shimoga police in August 2014 arrested 18 staff members of the Shimoga District Central Cooperative Bank (SDCCB), including Gowda for their alleged involvement in irregular practices.

Gowda and the bank employees were charged with disbursing loans against fake gold, and in some cases, with no gold being mortgaged against the money advanced.

Gowda is said to be a key confidante of state deputy chief minister DK Shivakumar.