Rs 3.3 crore cash, African mining links: What ED searches on Karnataka minister found

The Enforcement Directorate (ED) on Friday said searches at 21 premises linked to Karnataka minister Satish Jarkiholi, his family members, and associates had yielded Rs 3.3 crore in unaccounted Indian currency and documents indicating alleged bribery in issuing contracts and undisclosed overseas investments.

While Jarkiholi denied wrongdoing, Chief Minister D K Shivakumar described the action as “politically motivated”. The searches, conducted on September 9 and 10 across Bengaluru, Belagavi, Gokak and Kolkata, were carried out under the Foreign Exchange Management Act (FEMA) as part of a probe into alleged undisclosed overseas investments.

The central agency said it had seized foreign currency, including US dollars and euros worth approximately Rs 15 lakh, along with digital devices and documents allegedly indicating irregularities in the Public Works Department (PWD) and the collection of bribes from contractors.

The premises searched included those linked to the PWD minister, his daughter and Chikkodi MP Priyanka Jarkiholi, son Rahul Jarkiholi, and brother-in-law YD Manjunath, along with Jarkiholi’s officer on special duty and personal assistant Malagouda Patil and associates Raju Daragshetti, Vittal Parasannavar, and Dr Girish Sonwalkar.

According to the ED, the searches yielded documents indicating that Priyanka, Rahul and Mahadevi Manjunath—Jarkiholi's sister and wife of YD Manjunath—had acquired stakes in foreign companies, including Eldorado Mining Resources in the Democratic Republic of Congo and Nava Aurum Mining Ltd in Zambia.

The agency further alleged that Jarkiholi held nearly 40 per cent in Magnitude Star SARL, a gold-mining company in Congo, and said it recovered documents relating to other foreign entities with mining interests in Africa, along with evidence of cash investments and expenditure in a Congo-based entity allegedly routed through unauthorised channels.

The probe has also drawn in Bharat Vanijya Eastern Private Ltd. Searches were carried out at its offices and the residences of its officials. The ED alleged the company paid a substantial bribe to secure a PWD tender, and said it is examining whether the proceeds were used to acquire assets abroad.

Incriminating material was also recovered from accounts of an entity allegedly controlled by YD Manjunath. Satish Jarkiholi said Opposition leaders, particularly those from the Congress and regional parties, were being targeted.

“Central agencies are letting go of big fish and are coming after small fish. I may have made some minor mistakes. No one can say that we were 100 per cent correct in all our business dealings. But then, they seem to be targeting only Congress and Opposition parties like regional parties,” he said.

Jarkiholi said Chief Minister D K Shivakumar had earlier warned Congress leaders about such operations and claimed that Karnataka Pradesh Congress Committee (KPCC) president B K Hariprasad had told him that eight Congress leaders from Karnataka could be targeted.

Clarifying that the ED action was a “search and not a raid”, Jarkiholi said the agency had issued a notice over alleged FEMA violations, particularly relating to proposed overseas investments. He maintained that the investments had not yet been made and that he had only sought permissions from agencies, including the Reserve Bank of India.

Jarkiholi said he and his family members and associates cooperated with ED officials and that he faced no harassment or political pressure during the search. He also said no ED officer had asked him to join the BJP or offered to drop the investigation in return.

Jarkiholi said ED officials took documents and around Rs 2 crore in cash during the searches. He said the family had claimed ownership of the cash and would seek its release through legal means by submitting the required documents.

He added that he would cooperate with the investigation and face the legal process. The raids triggered a sharp exchange between the Congress and the BJP. Chief Minister D K Shivakumar dismissed the searches as “politically motivated”, accusing the BJP of misusing central agencies and saying the timing–coinciding with the state government’s 100-day celebrations–was no coincidence.

“The ED raids against him are not something we are unaware of… He is a senior minister and is involved in business and commercial activities…there is nothing to hide,” Shivakumar said, adding that Jarkiholi would respond legally.

Karnataka Home Minister Priyank Kharge called the raids part of a “larger strategy to target Opposition leaders”. Congress workers held protests in Bengaluru and Gokak in support of Jarkiholi, with KPCC leaders participating.