In a renewed probe into a nearly decade-old banking scam, the Enforcement Directorate (ED) carried out searches in Karnataka’s Shivamogga and Kumsi on Tuesday. The operation is tied to a ₹62.77 crore fraudulent gold loan case linked to the District Cooperative Central Bank (DCC), which first came to light in 2014.

At the heart of the scandal is the alleged sanctioning of loans against counterfeit gold ornaments. R M Manjunatha Gowda, who held the position of chairman at the time of the original incident, is currently the DCC Bank chairman as well as the head of the Malnad Area Development Board. He was previously taken into custody when the scam surfaced but was later cleared by the Criminal Investigation Department (CID).

ED officials, with help from local law enforcement, searched multiple premises—this included the homes of then bank manager Shobha, former employees, personal drivers, and relatives of Gowda.

The case, which had appeared to be shelved after the CID probe, has gained momentum again as federal agencies examine financial transactions and the flow of funds allegedly connected to the scam.

The initial investigation had sparked political controversy, as the then coalition government of JD(S) and Congress had handed over the case to CID, which eventually exonerated top officials. However, fresh scrutiny by the ED signals a deeper investigation into the financial irregularities.