Minister Satish Jarkiholi likely to get ED notice; probe takes new turn after raids

The Enforcement Directorate’s (ED) search operations at the residence of Karnataka Public Works Minister Satish Jarkiholi, as well as premises linked to his family members, including his Lok Sabha MP daughter Priyanka Jarkiholi, and close associates, could now move into another phase.

ED officials are examining the documents, financial transactions and contract-related information seized during the raids, and discussions have begun in political circles that the Congress minister may be served a notice in the next stage. However, there is no official information so far that a notice has been issued. Jarkiholi himself has also said that he will respond if a notice is served.

ED searches 21 locations; cash and documents seized

On September 9 and 10, the ED conducted searches at 21 locations in Bengaluru, Belagavi, Gokak and Kolkata linked to Jarkiholi, his family members and close associates. The ED said the operation resulted in the seizure of unaccounted Indian currency worth Rs 3.3 crore, foreign currency worth around Rs 15 lakh, digital devices and various documents.

Also read: ED flags overseas shareholding of Karnataka minister Satish Jarkiholi's family, 'bribes' in PWD

According to the ED, some of the documents point to a possible flow of money between suspected bribes linked to Karnataka Public Works Department (PWD) contracts and foreign investments. The investigation is also looking into investments in mining companies in Africa and foreign financial transactions.

Could information on corruption-related documents be shared with Lokayukta and CBI?

Meanwhile, reports suggest that information relating to documents found during the raids concerning alleged irregularities in contracts and bribery may be shared with the Lokayukta and the Central Bureau of Investigation (CBI). Given the limitations on the ED's direct powers to investigate allegations of corruption against state government officials or public servants under the Prevention of Corruption Act, it is reported that the agency may hand over information obtained during its searches to the relevant investigative agencies.

Also read: Karnataka flags severe drought, urges CWMA to rethink TN water-sharing order

If the documents seized during the raids are found to contain evidence of corruption, the ED is said to be considering writing to the Lokayukta or CBI with details of the findings. However, there is still no official information that the ED has sent any such communication.

Senior ED officials from Delhi visit Bengaluru

Amid these developments, the arrival in Bengaluru of senior officials from Delhi, including ED Director Rahul Navin, has attracted attention. The ED Director, who arrived in Bengaluru on September 13, is reportedly set to review the progress of investigations into key cases being handled in the state. Since the Jarkiholi case is also considered one of these important cases, the visit has assumed greater significance in political and investigative circles.

Jarkiholi has already made his position clear on the ED raids. He has said that he answered the questions posed by ED officials and sought more time to respond to questions for which he did not have the answers. He has stated that if a notice is served, he will respond with the relevant documents. He has also maintained that the ED's action does not amount to a final allegation, pointing out that the agency itself has described the transactions in its statement as being at the stage of being ‘suspicious’ or ‘alleged’.

The minister has also rejected the allegations concerning foreign investments. He said the ED had questioned him about whether his family had made investments abroad, and that he had told the officials that he had not made any foreign investments. He has said that he will respond through legal channels if a notice is issued.

Consultations with legal experts?

Meanwhile, information is circulating in political circles that Jarkiholi is consulting legal experts on the next course of legal action. If an official notice is issued by the ED, the next step could involve providing explanations regarding the documents seized during the raids, detailing the source of the funds and submitting documents relating to the alleged foreign investments.

(This article was originally published in The Federal Karnataka)