A Special Court in Bengaluru has sentenced retired Excise Guard and in-charge Sub-Inspector M. Ramachandra to five years of rigorous imprisonment and his daughter R. Yurekha to three years under the Prevention of Money Laundering Act (PMLA), in a case registered by the Directorate of Enforcement (ED). The verdict, pronounced on 14 October 2026 by the Additional City Civil and Sessions Judge and Special Judge for CBI Cases, Bengaluru (CCH-48), also ordered the confiscation of five immovable properties to the Central government.

Key Verdict Details

The court imposed a fine of ₹5 lakh on Ramachandra and ₹3 lakh on Yurekha. It ordered the confiscation of five properties under Section 8(5) of the PMLA. Observing that the offence affected society at large, the court did not order separate compensation. The judgment was delivered in Special Criminal Case No. 357/2016, registered by the ED's Bengaluru Zonal Office.

Origins of the Case

The case traces back to a disproportionate assets investigation by the Karnataka Lokayukta Police. An FIR was registered on 7 July 2009 under Sections 13(1)(e) read with 13(2) of the Prevention of Corruption Act, 1988, covering a check period from 1 July 1977 to 8 July 2009. The ED registered an Enforcement Case Information Report on 26 October 2009, initiating the money laundering investigation. In March 2016, the ED provisionally attached eight properties valued at approximately ₹1.09 crore and filed its prosecution complaint in June 2016, leading to formal PMLA proceedings.

How the Money Was Laundered

According to investigators, Ramachandra allegedly misused his position in the Excise Department to accumulate assets disproportionate to his known income. His disproportionate assets were assessed at ₹42,48,188.50, representing 97.75% of his known income, according to case records. Investigators traced unexplained cash deposits in bank accounts held by him and family members, as well as deposits into Kwality Wine Centre, a liquor business registered in Yurekha's name. Cash deposits at the liquor shop reportedly rose from ₹70,000 in 2001-02 to ₹83.9 lakh in 2008-09, with funds allegedly used to acquire immovable properties.

The investigation also found that Ramachandra had used his official position to facilitate a liquor licence in his daughter's name, transferred to Yurekha in 2001 when she was still in college. A fee of ₹4.5 lakh and rent of ₹50,000 were reportedly paid, though no supporting records were found for the rent, said to have been paid by her grandmother. Yurekha had declared the liquor shop's income in her income tax returns, presenting the funds as business earnings, and purchased land in Hunsur in 2007 — which the court treated as proceeds of crime. Notably, a site in Yelahanka, Bengaluru, purchased using the liquor shop's income, was excluded from the properties ordered for confiscation.

Court's Findings on Culpability

The court held that the prosecution had proved money laundering charges against both accused under Sections 3 and 4 of the PMLA, applying the presumption under Section 24 of the Act after finding the accused had failed to rebut it with evidence. The accused's claims — including that their mother had financed construction in Vijayanagar and that Sharada had purchased certain sites — were unsupported by documents. Yurekha was found to have knowingly assisted in holding property acquired through proceeds of crime.

This conviction follows an earlier judgment in the underlying corruption case. On 8 November 2024, a trial court had convicted Ramachandra under the Prevention of Corruption Act, sentencing him to three years of rigorous imprisonment with a fine of ₹50 lakh. While deciding sentences in the present case, the court considered the offences white-collar economic crimes with significant social impact, but also took into account Ramachandra's age of around 72 and Yurekha's family circumstances as mitigating factors.

What Happens Next

The five confiscated properties now vest with the Central government under PMLA provisions. The case underscores the ED's sustained multi-year pursuit of corruption-linked money laundering originating from state government departments — a pattern that has seen Bengaluru's zonal office escalate enforcement actions in recent years. Whether the convicts appeal the sentences before a higher court remains to be seen.