ED Cracks Down in Shivamogga over ₹62.77 Crore Gold Loan Scandal
In a renewed probe into a 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. The ED’s move is aimed at unearthing the truth behind the scam and recovering the ill-gotten gains.
The gold loan scam, which has been under investigation since 2014, involves alleged fraudulent transactions worth ₹62.77 crore. The scam is believed to have been perpetrated by a group of individuals who were employees of the DCC Bank and its subsidiaries. The accused allegedly took out loans from the bank using fake gold jewelry as collateral and then disappeared with the funds.
The ED’s latest operation is a significant development in the case, as it is the first time that the agency has taken direct action against the accused. The searches were carried out at multiple locations in Shivamogga and Kumsi, including the residences and offices of the accused individuals.
The ED’s move is seen as a major blow to the accused, who had been evading arrest and investigation for several years. The agency has also seized a significant amount of assets, including cash, gold, and other valuables, during the searches.
The DCC Bank is a major cooperative bank in Karnataka, with a significant presence in the state’s rural areas. The bank has over 100 branches and serves millions of customers. However, the gold loan scam has tarnished the bank’s reputation and has raised questions about the efficacy of its internal controls.
The ED’s investigation into the scam is ongoing, and the agency is expected to file a chargesheet soon. The accused individuals are likely to face serious charges, including cheating, forgery, and conspiracy.
The gold loan scam is not an isolated incident, and it is part of a larger trend of banking frauds that have been reported in the country in recent years. The Reserve Bank of India (RBI) has been cracking down on banking frauds, and the ED has been working closely with the RBI to investigate and prosecute such cases.
The ED’s action in Shivamogga is seen as a significant step towards tackling financial frauds and ensuring that those responsible are held accountable. The agency’s operations have sent a strong message to banking fraudsters that they will be pursued relentlessly and that their ill-gotten gains will be recovered.
The gold loan scam has also raised questions about the role of the bank’s management and the supervisory authorities in failing to detect and prevent the scam. The RBI and the Karnataka government have launched separate inquiries into the scam, and the findings of these inquiries are expected to be made public soon.
The ED’s investigation into the gold loan scam is a complex and challenging one, and it requires a high degree of expertise and resources. The agency has been working closely with the Karnataka police and other law enforcement agencies to gather evidence and build a strong case against the accused.
The ED’s action in Shivamogga is a significant development in the case, and it is likely to have a major impact on the investigation and prosecution of the accused. The agency’s operations have sent a strong message to banking fraudsters that they will be pursued relentlessly and that their ill-gotten gains will be recovered.
