The Enforcement Directorate (ED) in Bengaluru has arrested RM Manjunatha Gowda, the ex-chairman of the Shivamogga District Co-operative Bank, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

Following his arrest, Gowda was presented before a designated PMLA court, which granted the ED 14 days of custody for further interrogation and investigation.

On April 8, the agency conducted extensive searches at several premises in Shivamogga and Bengaluru. These included the head office of the Shivamogga DCC Bank. The raids were initiated under Section 17 of the PMLA in relation to an alleged gold loan fraud and unauthorized financial transfers.

During the raids, officials reportedly seized multiple forms of evidence, both physical and digital. According to the ED’s press note, the probe uncovered serious financial misconduct involving the Shivamogga DCC Bank’s city branch.

The misappropriation of funds was allegedly orchestrated by branch manager B Shobha, who acted under the direction of Manjunatha Gowda. Investigations show that around ₹62.77 crore was siphoned off through fraudulent activities carried out in coordination with other conspirators.

The ED further revealed that the illicit funds were not only laundered but also used to acquire various properties. Gowda is said to have accepted and retained assets—both movable and immovable—believed to be bought using the proceeds of the scam.

The case highlights a deep-rooted nexus between bank officials and financial crime.