The Enforcement Directorate (ED), Bengaluru Zonal Office, has provisionally attached assets—both movable and immovable—valued at ₹13.91 crore. These properties belong to R M Manjunatha Gowda, ex-Chairman of the Shimoga District Co-Operative Central Bank (DCCB), and his wife. The action falls under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the gold loan fraud at the bank’s City branch.

According to a charge-sheet filed by Karnataka Police, branch manager Ms. B. Shobha, along with other accused, diverted approximately ₹62.77 crore in bank funds through fraudulent means.

Their strategy involved opening fake gold loan accounts without customers’ knowledge by using forged and fabricated documents.

The ED’s probe uncovered massive financial irregularities at the City branch. Ms. Shobha reportedly acted under the directives of R M Manjunatha Gowda in executing the scam. Funds obtained illegally were siphoned off and allegedly transferred to him.

The investigation established that Gowda accumulated wealth, including properties and valuables, using proceeds derived from these illegal transactions. The Lokayukta Police had earlier found that his assets were significantly disproportionate to his known income.

Searches carried out on April 8, 2025, at multiple premises in Shimoga and Bengaluru— including the DCCB branch—led to the recovery of key documents, digital records, and about 2.5 kg of gold jewellery.

The ED apprehended R M Manjunatha Gowda on April 9, 2025, on money laundering charges. He remains in judicial custody. The case continues to be actively investigated.