The Enforcement Directorate has alleged that Karnataka Public Works Department Minister Satish Jarkiholi and members of his family had acquired stakes in multiple gold mining and other business entities in Africa, as the agency intensified its investigation into alleged undisclosed overseas investments and cross-border transactions.
The ED said on Friday that its searches at multiple premises linked to Jarkiholi, his family members and associates on September 9 and 10 under the Foreign Exchange Management Act (FEMA) led to the seizure of documents and digital devices relating to foreign investments.
According to the agency, the searches revealed that the minister and his family members had acquired shareholding in foreign entities, including companies involved in mining operations in Africa.
The agency specifically named Eldorado Mining Resources in Congo and Nava Aurum Mining Limited in Zambia. It also alleged that Satish acquired nearly 40 per cent stake in Magnitude Star SARL, a gold-mining company in Congo.
The ED said documents relating to several other foreign entities that own mining assets in Africa were also seized during the searches.
The investigation has also brought the Jarkiholi family’s alleged overseas investments under scrutiny. The agency said Satish’s daughter Priyanka Jarkiholi, who is the Chikkodi MP, his son Rahul Jarkiholi and his sister Mahadevi Manjunath, wife of Karnataka excise department officer Y.D. Manjunath, had acquired stakes in foreign entities.
The ED has alleged that investments and expenses relating to an entity in Congo were made in cash through “unauthorised channels”. It also claimed to have found evidence of transactions connected with foreign mining interests.
The searches extended beyond the minister’s immediate family. Premises linked to his Officer on Special Duty and personal assistant Malagouda Patil, as well as associates Raju Daragshetti, Vittal Parasannavar and Girish Sonwalka, were searched.
The agency also searched the premises of Bharat Vanijya Eastern Private Limited (BVEPL), a private company which, it alleged, paid a “huge bribe” to obtain a PWD tender. The ED claimed that the money was subsequently used for acquiring foreign assets.
The agency further alleged that its searches uncovered material relating to alleged irregularities in the Karnataka PWD and the collection of bribes from contractors. It said documents and digital devices containing information about alleged bribe collections and financial dealings involving influential persons were seized.
The ED said it seized unaccounted cash worth ₹3.3 crore and foreign currencies, including US dollars and euros, valued at about ₹15 lakh. The agency did not specify the amount recovered from individual premises.
The minister, his family members and the other individuals named in the searches have not publicly commented on the ED’s allegations so far.
Karnataka Chief Minister D.K. Shivakumar, however, has rejected the agency’s charges against his cabinet colleague, describing the searches and allegations as “nothing but politics”.
The ED investigation is continuing, with the agency examining the alleged overseas investments, the source of funds and the financial links between the foreign mining entities and transactions connected to Karnataka’s PWD contracts.
