The Enforcement Directorate has escalated its scrutiny of Karnataka’s cooperative institutions, conducting a series of searches and investigations into alleged financial malpractices. These actions underscore growing concerns over the integrity of financial operations within the state’s cooperative sector.
In a notable development, the ED raided multiple properties linked to Congress leader R M Manjunath Gowda, chairman of the Shivamogga District Cooperative Central Bank. The searches targeted Gowda’s residence in Thirthahalli, his relative H C Usha’s house in Shivamogga town, and properties in Bengaluru. These operations are part of an investigation into an alleged scam at the Shivamogga DCC Bank, where Gowda has served as chairman since 1997. In 2014, he was arrested for allegedly disbursing loans against fake gold, resulting in a reported loss of approximately ₹68 crore for the bank.
The ED’s focus extends beyond individual cases. The agency has attached assets worth over ₹45 crore in connection with a money laundering case involving Sri Guru Raghavendra Sahakara Bank Niyamitha and Sri Guru Sarvabhouma Credit Co-Operative Ltd. The attached assets include bank balances, fixed deposits, and immovable properties such as agricultural land and residential apartments. This action follows allegations of embezzlement exceeding ₹1,500 crore, affecting numerous depositors, primarily senior citizens.
The Income Tax Department has also uncovered significant irregularities within Karnataka’s cooperative banks. Searches conducted at 16 premises revealed bogus expenditures amounting to ₹1,000 crore. Cooperative banks were found to be discounting bearer cheques issued by various business entities to fictitious entities, facilitating tax evasion. Additionally, these banks allegedly allowed the opening of fixed deposit receipts using cash deposits without adequate due diligence and sanctioned loans using the same as collateral. Unaccounted cash loans exceeding ₹15 crore were reportedly provided to certain individuals.
In another instance, the ED conducted raids on the premises of Karnataka Congress MLA K Y Nanjegowda and entities linked to him. The 61-year-old legislator, representing the Malur assembly seat in Kolar district, is under investigation for alleged irregularities in the appointment of staff in the Kolar-Chikkaballapur District Cooperative Milk Producers Union Ltd , where he serves as president. The ED’s case is based on local police FIRs related to these alleged irregularities.
Kolkata’s Iconic Tram Will Now Cease To Be The Vehicle Of Transport 