Bengaluru: Karnataka Public Works Minister Satish Jarkiholi has defended the cash recovered during recent Enforcement Directorate searches at properties linked to him and his family, saying their companies have an annual turnover of more than ₹2,000 crore and that the approximately ₹2 crore cash found at his residence was not a large amount.
Jarkiholi made the remarks while responding to the ED searches conducted at his residences, offices and premises linked to his family members and associates. He has maintained that the searches were politically motivated and denied making investments abroad, while saying his family had been preparing to invest in Africa.
Jarkiholi explains ₹2 crore cash found at residence
Jarkiholi said the cash found at his residence belonged to his family and would be legally claimed.
He said the family’s companies have an annual turnover of more than ₹2,000 crore and argued that the approximately ₹2 crore recovered during the searches should not be viewed as an unusually large amount in that context.
The minister also said his family had planned to establish mining and trading companies in Africa but insisted that the proposed investments had not yet been made.
According to Jarkiholi, preparations for such investments were under way and the family had created companies in the names of his son and daughter. He said the relevant documents had already been submitted to the Income Tax Department and would also be provided to the ED whenever required.
ED reports larger total seizure
The ED’s account of the searches gives a different figure for the overall cash recovered.
The agency said searches conducted on September 9 and 10 at multiple premises resulted in the seizure of ₹3.3 crore in unaccounted Indian currency, besides foreign currency worth approximately ₹15 lakh, including US dollars and euros.
The searches covered properties linked to Satish Jarkiholi, his daughter and Chikkodi MP Priyanka Jarkiholi, his son Rahul Jarkiholi, his sister Mahadevi Manjunath, brother-in-law and excise official Y D Manjunath, and other associates.
The ED has also seized documents relating to several foreign entities with mining interests in Africa, according to its statement.
ED alleges overseas investment links
The Enforcement Directorate is investigating the matter under the Foreign Exchange Management Act (FEMA) and has alleged that members of the Jarkiholi family acquired stakes in several overseas companies.
According to the agency, the entities include Eldorado Mining Resources in Congo and Nava Aurum Mining in Zambia. The ED has also alleged that Satish Jarkiholi holds nearly 40% in Magnitude Star SARL, a gold-mining company in Congo.
The agency has further alleged that a private company, Bharat Vanijya Eastern Private Limited, paid substantial kickbacks to secure contracts from the Karnataka Public Works Department and that these funds were subsequently used to acquire overseas assets.
These are allegations made as part of an ongoing investigation and have not been established as facts by a court.
Minister denies making foreign investments
Jarkiholi has rejected the ED’s reported allegation that he made investments abroad.
He said the family had only planned to invest in Africa and was in the process of preparing for such investments. The minister also said he had answered the questions put to him by ED officials and would provide additional information where necessary.
He has questioned why the agency conducted extensive searches when documents could have been sought through notices.
Jarkiholi has also alleged that the ED action could be politically motivated and suggested that other individuals involved in the matter may be more significant targets.
ED searches 18 or more premises
The ED’s searches began on September 9 and initially covered 18 premises across Karnataka, including Bengaluru, Belagavi and Gokak, as well as locations linked to Jarkiholi’s family and associates. Later reports said the operation covered 21 premises.
The investigation is examining alleged undisclosed overseas investments, cross-border business dealings and suspected financial irregularities.
The agency has said the searches produced digital devices, documents and other material that could help investigators trace the alleged movement of funds.
Political controversy intensifies
The ED searches have triggered a political confrontation in Karnataka.
Congress leaders have questioned the timing of the action and alleged that central investigating agencies are being used against opposition leaders. Jarkiholi has also described the searches as politically motivated.
The BJP, meanwhile, has defended the investigation and argued that agencies should be allowed to investigate allegations of financial wrongdoing.
Karnataka Legislative Council Opposition Leader Chalavadi Narayanaswamy said corruption should not be viewed through the lens of caste. He maintained that agencies such as the ED, Income Tax Department and CBI were created under the Constitution and should be allowed to perform their duties.
Investigation continues
The ED probe remains underway, with investigators examining the documents, cash and foreign-currency holdings recovered during the searches.
Jarkiholi has maintained that the cash found at his residence belongs to his family and that his overseas investment plans had not materialised. The ED, however, has alleged that the searches uncovered evidence pointing to undisclosed overseas shareholdings and financial transactions.
The competing claims are now part of an ongoing investigation. The seizure of cash or documents during an ED search does not by itself establish criminal liability, and any allegations against Jarkiholi or his family will have to be established through the legal process.