Karnataka News: ED Raids Cooperative Banks in Bengaluru and Shivamogga Over Suspected Money Laundering

BENGALURU: The Enforcement Directorate (ED) conducted raids at multiple locations in Karnataka, including the Shivamogga Co-operative Apex Bank and the Apex Bank at Chamarajapet in Bengaluru.

The ED officials raided eight locations in Shivamogga and two in Bengaluru, including the Apex Bank in Chamarajpet. The raids are related to a case registered in 2018 against the DCC Bank, and Manjunath Gowda, the bank’s president, is being questioned. Later, ED officials filed an ECIR.

Manjunath Gowda had obtained a stay order from the High Court in the case. After three years of legal battle, the High Court lifted the stay order. Manjunath Gowda is accused of misusing funds and fake gold ornaments and might be arrested.

Fake gold ornaments were mortgaged at banks in Shivamogga and Thirthahalli in the names of fake persons, and money was withdrawn. Manjunath Gowda had misused crores of rupees from cooperative banks.

DCC Bank President Manjunath Gowda was taken into ED custody and is likely to be arrested this evening in connection with the fraud.

Following the raid, the Enforcement Directorate conducted raids on several locations in Shivamogga, including house of Shobha, the former manager of DCC bank of the Gandhi Bazaar branch.

Meanwhile, a separate raid was carried out by an ED team on the house of Shivakumar, a former driver of DCC Bank president Manjunath Gowda, on Kamakshi Street.

The raids are related to a 2014 case involving fake gold worth approximately Rs 68 crore. The ED is investigating the case, reviewing documents and records, and has also raided the home of Nagabhushan, the former MD of Shivamogga DCC Bank’s central branch.