Bengaluru, September 11 (Daily Kiran) : Karnataka’s Public Works Department Minister, Satish Jarkiholi, is embroiled in a significant investigation by the Enforcement Directorate (ED). The agency has revealed that Jarkiholi holds a nearly 40% stake in a gold mining company in the Democratic Republic of Congo. Accusations have surfaced that funds linked to bribery from public works contracts were used to acquire foreign assets.
During searches conducted on September 9 and 10, the ED seized ₹3.3 crore in unaccounted cash from various locations associated with Jarkiholi and his associates. The operation took place across 21 sites, including Bengaluru, Belagavi, Gokak, and Kolkata. This action was part of an inquiry into alleged undisclosed foreign investments, cross-border business dealings, and financial irregularities.
The ED’s statement indicated that Jarkiholi acquired his stake in a company named ‘Magnitude Star SARL,’ which operates in gold mining. Additionally, documents related to other foreign companies owning mining assets in Africa were also confiscated.
The agency’s investigation has extended to family members, including Jarkiholi’s daughter, Priyanka, son Rahul, and brother-in-law Y.D. Manjunath. Significant assets belonging to Jarkiholi’s close associates, including his Officer on Special Duty and Personal Assistant, were also searched.
The ED has accused a private firm, Bharat Vaniyag Eastern Private Limited (BVEPL), of paying substantial bribes to secure tenders from the Public Works Department. Allegedly, these funds were funneled into the purchase of foreign properties.
The agency’s focus has also been on the family’s international business interests. Members of the Jarkiholi family reportedly hold stakes in several foreign companies, including Eldorado Mining Resources in Congo and Nawa Orm Mining Limited in Zambia. The ED conducted searches at Jarkiholi’s residences in Gokak and Bengaluru, including his office on Crescent Road.
In total, the agency confiscated ₹3.3 crore in unaccounted Indian currency and approximately ₹15 lakh in foreign currencies, including U.S. dollars and euros. Evidence suggests that substantial cash investments were made in the Congo company through unauthorized channels, raising suspicions of violations under the Foreign Exchange Management Act (FEMA).
The ED has uncovered evidence linking irregularities in the Public Works Department to the ongoing investigation. Several incriminating documents and digital devices have been seized, containing information related to the alleged collection of bribes from contractors, including BVEPL.
The agency aims to trace the alleged flow of funds between domestic companies and foreign assets while investigating potential violations of foreign exchange regulations. The inquiry into Jarkiholi’s alleged foreign investments, financial irregularities associated with the Public Works Department, and bribery claims is ongoing.
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