ED Searches 21 Premises Linked to Karnataka Minister Satish Jarkiholi, Family; ₹3.3 Crore Cash Seized in FEMA Probe
Bengaluru, September 11: The Enforcement Directorate’s Bengaluru Zonal Office has searched 21 premises linked to Karnataka Public Works Minister Satish Jarkiholi, his family members and close associates across Bengaluru, Belagavi, Gokak and Kolkata as part of a Foreign Exchange Management Act (FEMA) probe into alleged undisclosed overseas investments, cross-border business links and suspected financial irregularities, the agency said on Friday.
The searches were conducted on September 9 and 10. According to the ED, the operation resulted in the seizure of ₹3.3 crore in allegedly unaccounted Indian currency and foreign currencies, including US dollars and euros, collectively valued at about ₹15 lakh.
The agency said the searches covered Chikkodi MP Priyanka Jarkiholi, daughter of Satish Jarkiholi; his son Rahul Jarkiholi; and his brother-in-law Y.D. Manjunath. Properties linked to several of the minister’s close associates, including his OSD and personal assistant Malagouda Patil, Raju Daragshetti, Vittal Parasannavar and Dr Girish Sonwalkar, were also searched.
The ED said searches were also carried out against officials of Bharat Vanijya Eastern Private Ltd (BVEPL) over an allegation that the company had paid a large bribe in return for obtaining a tender from the Public Works Department and that the money was allegedly used to acquire foreign assets. The company’s owners’ offices and residences were covered in the searches, according to the agency.
The ED alleged that members of Jarkiholi’s family had acquired shareholdings in multiple foreign entities. It named his daughter Priyanka Jarkiholi, son Rahul Jarkiholi and sister Mahadevi Manjunath, who is the wife of Y.D. Manjunath, in this connection.
According to the agency, the foreign entities in which family members allegedly acquired shareholdings include Eldorado Mining Resources in Congo and Nava Aurum Mining Ltd in Zambia, among others.
The ED further claimed that Satish Jarkiholi had acquired a nearly 40% stake in Magnitude Star SARL, a Congo-based entity engaged in gold mining. The agency said documents relating to various other foreign entities owning mining assets in Africa were also found and seized during the searches.
The simultaneous operations covered multiple locations, including the minister’s residences in Gokak and Dollars Colony, as well as his office-cum-residence on Crescent Road in Bengaluru. Properties in Gokak and Belagavi were also searched, the ED said.
According to the agency, evidence gathered during the operation indicated that large investments or expenses had allegedly been made in cash in an entity in Congo through an unauthorised channel. The ED linked this material to its investigation into possible FEMA violations.
The agency also claimed that the searches yielded evidence relating to alleged irregularities in the Karnataka Public Works Department. It said several materials and documents, including digital devices, were seized in connection with alleged collection of bribe money from contractors such as BVEPL.
The ED alleged that the material concerned transactions involving entities and accounts of various influential persons, including an entity controlled and managed by Y.D. Manjunath, Satish Jarkiholi’s brother-in-law.
The agency’s September 11 press release described the searches as part of an investigation to ascertain the Jarkiholi family’s alleged undisclosed overseas investments, cross-border business links and suspected financial irregularities under FEMA.
The allegations concerning foreign investments, the PWD tender, alleged bribe payments and financial transactions are claims made by the Enforcement Directorate as part of an ongoing investigation. The agency said further investigation is in progress.
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