Raids Connect Case to Karnataka Home Minister G Parameshwara
In a significant twist in the ongoing gold smuggling investigation involving Kannada actress Ranya Rao, the Enforcement Directorate (ED) has uncovered a wide-ranging web of financial irregularities and potential money laundering operations, some of which may have direct ties to Karnataka’s political leadership.
On Wednesday, the ED conducted raids at 16 locations, including a medical college in Tumakuru allegedly linked to Karnataka Home Minister Dr G Parameshwara. The raids were prompted by the detection of a suspicious ₹40 lakh payment made towards Ranya Rao’s credit card dues by an educational trust associated with the minister.
Ranya Rao: Alleged Middlewoman in Gold Smuggling Ring
Ranya Rao, who rose to fame in the Kannada film industry, is now under scrutiny for allegedly acting as an intermediary in the smuggling and sale of gold across Karnataka. According to sources within the ED, hawala operators have admitted to procuring smuggled gold through Rao, who reportedly facilitated its sale to various jewellers across the state.
The ED claims to have found large sums of money transferred to Rao’s accounts by multiple companies, often disguised as fake consultancy or labour supply payments. Notably, one construction firm listed her as a “supplier of labour” and routed crores of rupees to her, even though no actual services were rendered.
Political Angle Deepens: Role of Minister’s Trust Under Scanner
The case has now taken a political turn, with the ₹40 lakh payment towards Rao’s credit card dues by an educational trust linked to Dr Parameshwara drawing serious attention. ED officials reported that the trust was unable to provide any documentation or vouchers to justify such a transaction.
ED sources allege the payment was made under instructions from Dr Parameshwara. The medical college in Tumakuru, associated with the minister and the trust, was among the key locations searched during Wednesday’s operations.
Congress Denies Allegations, Terms Action “Politically Motivated”
In a quick response, senior Congress leaders came out in defence of Dr Parameshwara. Deputy Chief Minister DK Shivakumar dismissed the ED’s findings as “baseless and politically motivated,” describing Parameshwara as a “humble, simple man with no links to any such activities.”
Congress has accused the central government of using investigative agencies as tools to target opposition leaders ahead of the upcoming elections in Karnataka.
Complex Network of Shell Firms, Hawala Operators, and Foreign Exchange Violations
The ED’s preliminary report suggests that multiple shell companies and hawala operators were used to layer and launder illicit funds. Several entities involved in the gold smuggling racket were reportedly conducting illegal foreign exchange transactions without RBI clearance, in clear violation of FEMA and PMLA regulations.
The agency has identified proceeds of crime running into several crores, which were allegedly moved through bank accounts, shell firms, and personal credit cards to avoid detection.
Next Steps in the Investigation
The ED is now focusing on tracing the complete money trail, with particular interest in establishing political accountability in the financial irregularities uncovered. Officials have stated that more summons and arrests may follow, depending on how the case progresses.
The actress Ranya Rao is expected to be called in for a detailed statement. Meanwhile, the role of several trust members, chartered accountants, and jewellers across Bengaluru, Tumakuru, and Mangaluru is also under examination.
Public and Political Impact
The revelations come at a sensitive time for Karnataka’s political scene. If proven, these allegations could trigger major ramifications within the Congress-led state government and shake public trust in state institutions.
Analysts note that the case may set a precedent in investigating the use of celebrities in financial crimes and smuggling networks.