Gold smuggling case: DKS backs Parameshwara after ED raids

As the ED continued searches at institutions linked to Karnataka Home Minister G Parameshwara in connection with a money laundering probe tied to a gold smuggling case, Deputy Chief Minister DK Shivakumar came out strongly in support of his cabinet colleague, calling him a "clean and honest man".

Defending Parameshwara, the state Congress president said, "He might have gifted around ₹15-25 lakh to Rao during some family event or marriage, but that doesn't mean he encouraged her (actress Ranya Rao) to indulge in illegal activities like smuggling."

"We all are in public life. Many people run trusts. He might have gifted money for marriage. Can an influential leader like Parameshwara indulge in smuggling?" asked Shivakumar.

Parameshwara calls on CM

Amidst the ongoing ED raids on educational institutions linked to him, the Karnataka Home Minister on Thursday called on Chief Minister Siddaramaiah in Bengaluru.

The exact details of their conversation remain unknown. However, Congress sources said Parameshwara apprised the CM of the raids in connection with the gold smuggling case.

Also Read: Ranya Rao gold smuggling case: ED raids institutions linked to K'taka home minister

"He also told the CM about the circumstances in which the raids have taken place," they said.

Many ministers and ruling party MLAs, including DK Shivakumar, Satish Jarkiholi, and Dinesh Gundu Rao visited Parameshwara's Sadashivanagar residence in Bengaluru after the raids, to express support.

‘A clean and honest man’: DK Shivakumar

Speaking to reporters in Bengaluru, the Deputy CM said, "If she (Rao) has done anything wrong, let her be punished in accordance with the law. As far as Parameshwara is concerned, he is a law-abiding citizen, he is the Home Minister of the state, we are proud of him, he is a big leader. He was party president for eight years, he has done a lot of service to the state. He has been an MLA since 1989 with me, he has been a Minister... He is a clean and honest man... He might have given a gift for marriage, that's all. He will answer."

Also Read: Actress Ranya Rao granted bail in gold smuggling case but no release yet

Shivakumar said he met Parameshwara and assured him of the Congress party's full support.

"He is attending the cabinet meeting today," he added.

‘Congress will fight back’

Responding to a question on the Chief Minister and AICC General Secretary Randeep Singh Surjewala’s comments on the ED raids, Shivakumar said, "I stand by whatever my Chief Minister and AICC General Secretary have said. I can't take a separate stand, but whatever I have said is important."

Asked whether the party will protest against the raids, Shivakumar said the Congress will fight back legally and politically throughout the country, including the case involving Congress leader Sonia Gandhi.

Also Read: Ranya Rao, jeweller Sakariya linked to Rs 40 cr gold smuggling case: DRI

"Sonia Gandhi has not done any personal property. We will definitely fight. We have faith in the court and the court will give us justice," he added.

PMLA case

The Enforcement Directorate is conducting searches under the Prevention of Money Laundering Act (PMLA) targetting hawala operators and accommodation entry operators accused of routing "fake" transactions into Ranya Rao's accounts.

A PMLA case was registered a few months ago after the ED took cognisance of a CBI and DRI (Directorate of Revenue Intelligence) complaint into a larger gold smuggling racket in India, including the case of Ranya Rao.

Funds diverted from trust: ED

According to ED sources, an educational trust is suspected to have "diverted" funds and made a payment of ₹40 lakh towards the credit card bill of Ranya, allegedly on the instructions of an influential individual.

The sources claimed that the trust is linked to Parameshwara and the "influential" individual is a "politically-exposed person". The payment for the credit card bill lacked documentation or vouchers, they said.

Also Read: Karnataka gold smuggling: Accused Sahil Jain remanded to judicial custody

Earlier Shivakumar said, "Charitable institutions often help people... small charity might have been done for marriage, school fees, hospital bills, such help might have been done, I'm not denying it. Rest of the matter, let's see what they (ED) will do."

Parameshwara assures ED of full cooperation

Parameshwara on Thursday (May 22) assured full cooperation with the ED in its ongoing raids at the educational institutions linked to him, as part of the money laundering investigation.

The ED is probing alleged financial irregularities and has searched 16 locations in the state under the PMLA. According to Parameshwara, ED officials visited three institutions and a university, including Siddhartha Institute of Technology and Siddhartha Medical College, seeking financial records from the past five years.

He said he has instructed his staff to cooperate and provide all necessary information to the ED.

Also Read: ‘ED crossing all limits’: SC stays Tasmac probe, says agency ‘violating federal structure’

"As a person who believes in the law of the land, I am prepared to cooperate with whatever comes out of their verifications or searches," he said.

To a query on allegations that ₹40 lakh from his institution's account was used to pay Ranya Rao's credit card bill, Parameshwara declined to comment, saying he would respond after the investigation is complete.

He also refrained from commenting on speculation that he was targetted due to his Dalit background, and said he would address it if necessary in the future.

Ranya Rao was arrested on March 3

Ranya Rao was arrested on March 3 at the Kempegowda International Airport in Bengaluru after arriving from Dubai. Acting on a tip-off, DRI officials detained her and seized gold bars weighing 14.2 kg and valued at over ₹12.56 crore.

Ranya and co-accused Tarun Kondaru Raju were granted bail on Tuesday (May 20) by a special court for Economic Offences in Bengaluru in connection with the gold smuggling case.

Also Read: Ranya Rao 'confesses' to 17 gold bars in her possession; willing to cooperate with authorities

The court approved their default bail applications after the DRI failed to file a chargesheet within the stipulated period.

Ranya, however, will continue to remain behind bars.

She is the stepdaughter of DGP rank officer K Ramachandra Rao.

(With agency inputs)