New Delhi/Bengaluru, Sep 11 (PTI) The Enforcement Directorate (ED) on Friday said it has seized Rs 3.45 crore in cash during searches against Karnataka PWD Minister Satish Jarkiholi, his family members and others in a FEMA investigation related to their alleged undisclosed overseas investments and cross-border business links.
The central agency said in a statement that the September 9-10 searches, conducted under the Foreign Exchange Management Act (FEMA), showed that the Jarkiholi family “acquired” shareholding in multiple foreign entities and indulged in collecting “bribes” from PWD contractors.
Jarkiholi told reporters in Bengaluru on Thursday that he would provide all documents sought by the ED.
He alleged that central agencies are not acting against leaders of the Bharatiya Janata Party (BJP) with the same intensity.
“We may have made some minor mistakes. I cannot say that everyone is 100 per cent correct. Even if we have made mistakes, there are many others who have committed more serious mistakes than us. But the CBI, the ED or income-tax authorities do not look in that direction,” the Congress leader said.
Karnataka Chief Minister D K Shivakumar had rejected the ED’s charges against his colleague, saying the searches were “nothing but politics”.
The ED searches covered the premises of the 64-year-old minister in Gokak (in Belagavi district), Dollars Colony and his office-cum-residence on Crescent Road in Bengaluru, properties of his 29-year-old daughter Priyanka Jarkiholi, the MP from Chikkodi, son Rahul Jarkiholi and brother-in-law Y D Manjunath, a Karnataka excise department officer.
Additionally, properties belonging to the minister’s “associates”, including his Officer on Special Duty (OSD) and personal assistant Malagouda Patil, Raju Daragshetti, Vittal Parasannavar and Girish Sonwalka, were also searched, the agency said.
The premises of a private company, Bharat Vanijya Eastern Private Limited (BVEPL), was also covered as the ED alleged that it paid a “huge bribe” in lieu of getting a tender from the PWD that was used to acquire foreign assets.
The agency said Priyanka Jarkiholi, Rahul Jarkiholi and Satish Jarkiholi’s sister, Mahadevi Manjunath (wife of Y D Manjunath), “acquired” shareholding in foreign entities named Eldorado Mining Resources in Congo and Nava Aurum Mining Limited in Zambia.
“It was also revealed that Satish Jarkiholi acquired nearly 40 per cent stakes in Magnitude Star SARL, Congo, which is into gold mining. Documents of various other foreign entities owning mining assets in Africa were also seized,” it said.
The ED said it has seized “unaccounted” cash amounting to Rs 3.3 crore and foreign currencies, including US dollars and euros, worth Rs 15 lakh from the multiple premises searched. It did not specify what amount was seized from where.
“Evidence gathered during the search revealed that huge amounts of investment/expenses were made in cash in an entity in Congo, through unauthorised channels.
“The searches also revealed evidence related to irregularities in the PWD and several incriminating materials/documents, including digital devices related to collection of bribe money from contractors like BVEPL … and accounts of various influential persons, including accounts of entity controlled and managed by Y D Manjunath,” the agency alleged. PTI NES RC
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