Bengaluru, Sep 11 — Karnataka Public Works Department (PWD) Minister Satish Jarkiholi holds nearly a 40 per cent stake in a gold mining company in Congo, while the Enforcement Directorate (ED) on Friday alleged that bribe money linked to PWD contracts was used to acquire foreign assets and seized Rs 3.3 crore in unaccounted cash during searches at premises linked to him and his aides.
The official statement released in this regard said, "The Enforcement Directorate's (ED) Bengaluru Zonal Office has conducted searches at 21 premises linked to Karnataka Public Works Department Minister Satish Jarkiholi and his close aides in connection with an investigation into alleged undisclosed overseas investments, cross-border business links and financial irregularities."
The ED also claimed that Satish Jarkiholi had acquired nearly 40 per cent stakes in Congo-based Magnitude Star SARL, a company engaged in gold mining.
Documents relating to several other foreign entities owning mining assets in Africa were also found and seized during the searches, according to the central probe agency.
The searches were carried out on September 9 and 10 at four locations covering Bengaluru, Belagavi, Gokak and Kolkata under the provisions of the Foreign Exchange Management Act (FEMA), the ED said.
According to the central agency, the premises searched included those linked to Chikkodi MP and Jarkiholi's daughter Priyanka Jarkiholi, his son Rahul Jarkiholi and his brother-in-law Y.D. Manjunath.
Properties belonging to several close aides of the Minister, including his Officer on Special Duty and Personal Assistant Malagouda Patil, Raju Daragshetti, Vittal Parasannavar and Girish Sonwalkar, were also searched.
The ED also searched the offices and residences of officials and owners of private company Bharat Vanijya Eastern Private Ltd (BVEPL).
The agency alleged that the company had paid a huge bribe to secure a tender from the PWD department and that the money was allegedly used for acquiring foreign assets.
The searches also focused on the overseas business interests of the Jarkiholi family.
The ED said it found that family members, including Priyanka Jarkiholi, Rahul Jarkiholi and Mahadevi Manjunath, who is the wife of Y.D. Manjunath, had acquired shareholdings in multiple foreign entities.
"These entities include Eldorado Mining Resources in Congo and Nava Aurum Mining Ltd in Zambia, among others," the central agency said.
The searches covered the Minister's residences in Gokak and Dollars Colony in Bengaluru, as well as his office-cum-residence on Crescent Road in the city.
Properties in Gokak and Belagavi were also searched.
During the operation, the ED said it seized unaccounted Indian currency amounting to Rs 3.3 crore.
Foreign currencies, including US dollars and euros, valued at around Rs 15 lakh were also found and seized, the ED added.
The central agency said that evidence gathered during the searches indicated that substantial investments and expenses had allegedly been made in cash in an entity in Congo through unauthorised channels, raising suspected violations under FEMA.
The searches also allegedly unearthed evidence relating to irregularities in the PWD department.
The ED said it recovered several incriminating documents and digital devices containing information relating to the alleged collection of bribe money from contractors, including BVEPL.
According to the central agency, such evidence was found in the entities and accounts of various influential persons, including accounts of an entity allegedly controlled and managed by Y.D. Manjunath, who is the brother-in-law of Satish Jarkiholi.
The ED said the search action was aimed at investigating the alleged flow of funds between domestic entities and overseas assets and examining possible violations of foreign exchange regulations.
Further investigation into the alleged overseas investments, PWD-related financial irregularities, suspected bribe payments and foreign exchange violations is under progress, the central agency added.