ED Searches On PWD Minister Alleges Bribery In Contract / Undisclosed Overseas Investments

Directorate of Enforcement (ED), Bengaluru zonal office on Friday stated the two-day searches at multiple locations simultaneously linked to Karnataka Public Works Minister Satish Jarkiholi and his family members yielded huge amount of investments/expenses made in cash in an entity in Congo through unauthorised channel. The ED searches also seized cash amount of Rs 3.3 crore of Indian currency and foreign currency like US Dollars, EURO among others amounting to Rs 15 lakh.

In addition, ED searches revealed evidence related to alleged irregularities in the Public Works Department along with several incriminating materials/documents including digital devices related to collection of bribe money allegedly from contractors such as Bharat Vanijya Eastern Private Limited (BVEPL) and others. The officials of BVEPL were searched over allegations that the Company paid a huge bribe in lieu of getting a tender from the PWD department which was allegedly used for acquiring foreign assets.

The office and residences of BVEPL owners, ED sleuths came across Chikkodi Member of Parliament and daughter of Satish Jarkiholi Priyanka Jarkiholi, son Rahul Jarkiholi and sister Mahadevi Manjunath have acquired shareholding in multiple foreign entities such as M/s Eldorado Mining Resources, Congo and M/S Nava Aurum Mining Limited in Zambia. Satish Jarkiholi acquired 40 percent stakes in M/s Magnitude Star SARL, Congo which is into gold mining.

As many as 21 premises at four locations connected to Satish Jarkiholi were searched by ED sleuths on September 9 and 10 and the searches were conducted in Bengaluru, Belagavi, Gokak and Kolkata under the provisions of Foreign Exchange Management Act (FEMA). The searches were carried out to ascertain the Satish Jarkiholi family’s alleged undisclosed overseas investments, cross border business links and suspected financial irregularities.

The searches by ED sleuths covered Chikkodi Member of Parliament and daughter of Satish Jarkiholi Priyanka Jarkiholi, son Rahul Jarkiholi and brother-in-law Y.D. Manjunath. Additionally, ED searched properties belonging to several close associates of Satish Jarkiholi including personal assistant Malagouda Patil, Raju Daragshetti, Vittal Parasannavar and Dr Girish Sonwalkar.

Earlier Minister Satish Jarkiholi stated he will reply to the notice of ED if served. “There are many Bharatiya Janata Party leaders alleged involvement in high magnitude mistakes but officials of Central Bureau of Investigation, ED and Income Tax do not focus on them,” he said.

“We might have made minor mistakes. Can’t say everything is 100 percent accurate,” he stated.