The Enforcement Directorate (ED) has conducted extensive search operations across 21 locations linked to Karnataka Public Works Department (PWD) Minister Satish Jarkiholi, unearthing suspected unauthorized cross-border investments and foreign assets, the agency announced on Friday.
The coordinated searches, carried out on September 9 and 10 under the provisions of the Foreign Exchange Management Act (FEMA), spanned four cities: Bengaluru, Belagavi, Gokak, and Kolkata.
The agency stated that the probe focuses on undisclosed overseas transactions, cross-border corporate footprints, and alleged financial irregularities tied to the Jarkiholi family.
Prominent Figures and Entities Under Scrutiny The operations covered properties tied to immediate family members and close associates:
- Immediate Family: Premises belonging to Jarkiholi’s daughter and Chikkodi MP Priyanka Jarkiholi, son Rahul Jarkiholi, and brother-in-law Y.D. Manjunath.
- Key Aides: The residences and offices of personal assistant/OSD Malagouda Patil, Raju Daragshetti, Vittal Parasannavar, and Dr. Girish Sonwalkar.
- Corporate Links: Offices and residential properties of officials from M/s Bharat Vanijya Eastern Private Limited (BVEPL). The firm is accused of paying substantial bribes to secure PWD contracts, funds that investigators allege were subsequently diverted to acquire assets abroad.
African Mining Holdings and Foreign Assets According to official findings, seized documents reveal substantial foreign shareholdings held by the Minister and his relatives:
- Mining Stakes: Minister Satish Jarkiholi reportedly holds an approximate 40% stake in Magnitude Star SARL, a gold mining venture based in the Democratic Republic of the Congo.
- Family Investments: Records showed his daughter Priyanka Jarkiholi, son Rahul Jarkiholi, and sister Mahadevi Manjunath hold ownership interests in multiple foreign entities, including Eldorado Mining Resources (Congo) and Nava Aurum Mining Ltd (Zambia).
- Cross-Border Cash Trails: Investigators gathered evidence indicating significant unauthorized cash expenditures and investments funneled directly into Congolese entities.
Cash Seizures and Bribery Trail During searches across Jarkiholi’s properties—including his residences in Gokak, Belagavi, Dollars Colony, and his office-cum-residence on Crescent Road in Bengaluru—the ED seized ₹3.3 crore in unaccounted Indian currency alongside ₹15 lakh worth of foreign currency, comprising US dollars and Euros.
Digital devices and documents recovered from the premises point to a systematic collection of kickbacks from contractors like BVEPL. According to investigators, these transactions were routed through entities managed and controlled by Jarkiholi’s brother-in-law, Y.D. Manjunath.
The ED stated that further investigation into the international financial trails and FEMA violations remains underway.
