ED searches Jarkiholi’s residences, associates’ properties

The Enforcement Directorate conducted searches at more than 15 locations linked to Karnataka Minister Satish Jarkiholi and his associates over alleged overseas investments and financial transactions. The FEMA probe covers properties and financial dealings reportedly linked to South Africa and Uganda

Bengaluru: The Enforcement Directorate (ED) on Wednesday conducted searches at more than 15 locations linked to Karnataka Minister Satish Jarkiholi and his close associates under the Foreign Exchange Management Act (FEMA), 1999, as part of a probe into alleged illegal overseas investments and financial transactions.

The searches were conducted across Bengaluru, Belagavi and Goa and included Jarkiholi’s private residence in Dollar’s Colony, Bengaluru, his residence in Belagavi and a government-allotted residence in Bengaluru.

---

According to preliminary information, searches were conducted at five locations in Bengaluru, five in Belagavi and three in Gokak town in Belagavi district.

A team of more than 25 ED officers arrived in around 18 vehicles and began the searches at around 7 am. The premises were secured with the assistance of Central Reserve Police Force (CRPF) personnel.

The ED team also searched a flat associated with Jarkiholi in Bengaluru and properties linked to his daughter and MP Priyanka Jarkiholi.

ED officials were questioning staff members at Jarkiholi’s government residence in his presence. Officials said the search was initiated after they learned that the minister was at the residence preparing to attend the Cabinet meeting scheduled for Wednesday.

Sources said Jarkiholi does not frequently use his private residence in Bengaluru. During the searches, ED officials reportedly took the housekeeper from the Dollar’s Colony residence along with them for questioning.

The searches are part of a FEMA investigation into alleged overseas investments and financial transactions in violation of Reserve Bank of India (RBI) guidelines.

The ED is reportedly examining whether funds were transferred or investments were made in foreign countries, including South Africa and Uganda, and whether such transactions violated FEMA provisions.

Officials are also examining documents relating to foreign investments, fund transfers, properties and other financial transactions.

Apart from Jarkiholi’s properties, ED officials conducted searches at the premises of three of his close associates.

The residence of Dr Girish Sonwalkar, a doctor and reportedly a close associate of the minister, in the Laxmi Tech area of Belagavi city was searched by the officials.

Searches were also conducted at the residences of Raju Dharagashetti and Vitthal Parasannavar, two other associates of Jarkiholi, in Gokak.

According to sources, the ED conducted searches at around five locations in Belagavi district as part of the operation.

The ED is reportedly scrutinising financial records to determine whether there were any violations of FEMA provisions in connection with overseas investments and fund transfers.

Sources said Y Manjunath, a senior Excise Department official and relative of Jarkiholi, had also come under the agency’s scanner in connection with alleged irregularities in the Excise Department. Manjunath, Additional Commissioner of Excise for the Belagavi Zone, is reportedly the minister’s brother-in-law.

The ED had earlier conducted searches at Manjunath’s residence and other premises in June. Searches were also carried out at locations in Bengaluru, Belagavi, Mysuru and Athani.

Officials had reportedly recovered a diary during an earlier search and gathered details relating to financial transactions. Manjunath is also understood to have properties in Goa.

Sources further claimed that investments in Africa were made in the name of Manjunath’s wife several years ago. The agency is examining the nature and source of such investments as part of its investigation.

Rahul Jarkiholi, son of Satish Jarkiholi, is also reportedly a partner in a business entity linked to the investigation. The ED is examining the financial dealings and business links of persons associated with the case.

The latest ED searches have also acquired a political dimension, coming at a time when the Karnataka government headed by Chief Minister D K Shivakumar is completing 100 days in office.

Satish Jarkiholi, a senior Congress leader from Belagavi, has in recent months figured prominently in discussions within the party, with sections of political circles projecting him as a potential future Chief Ministerial contender. There has also been speculation in some quarters about the possibility of a Dalit Chief Minister.

The timing of the ED searches is therefore likely to trigger political reactions, with Opposition parties expected to question the alleged Excise Department irregularities and the financial dealings under investigation.

However, the ED searches and investigation do not by themselves establish wrongdoing by Satish Jarkiholi or any of the individuals whose premises were searched. The agency’s findings and any subsequent legal proceedings will determine the nature of the alleged violations.

The searches were continuing on Wednesday, and further details are awaited from the ED.