ED raids Karnataka Minister Satish Jarkiholi's homes in ₹178-crore excise scam probe
Synopsis
Key Takeaways
The Enforcement Directorate (ED) on Wednesday, 9 September conducted simultaneous searches at approximately 15 locations across Bengaluru, Belagavi, and Goa in connection with alleged irregularities in the Karnataka Excise Department. Among the premises raided was the Bengaluru residence of Karnataka Public Works Department (PWD) Minister Satish Jarkiholi, located in Dollar's Colony, as well as his residence in Belagavi and a government-allotted flat in Bengaluru.
Scale and Scope of the Operation
A team of more than 25 ED officers arrived at the search locations in approximately 18 vehicles, commencing operations at around 7 am. The premises were secured with the assistance of Central Reserve Police Force (CRPF) personnel, indicating the scale of the coordinated operation.
According to officials, searches were also conducted at a flat reportedly associated with Minister Jarkiholi in Bengaluru, as well as properties linked to his daughter and Member of Parliament Priyanka Jarkiholi. The housekeeper at the minister's Bengaluru private residence was reportedly taken along for questioning during the searches.
The Manjunath Connection
The current raids are reportedly linked to Y. Manjunath, a senior Karnataka Excise Department official and the minister's brother-in-law. Manjunath, who serves as the Additional Commissioner of Excise for the Belagavi Zone, had his properties in Bengaluru, Belagavi, and Goa searched as part of the same operation.
This is not the first time Manjunath has come under the ED's scanner. The agency had previously raided his residence and premises linked to his associates on 24 June, as part of its probe into alleged excise irregularities. During that earlier search of Manjunath's office, officials reportedly recovered a diary that yielded significant leads. The investigation is also reportedly examining alleged hawala transactions and possible foreign financial links.
Notably, Manjunath had approached the Karnataka High Court seeking a stay on the investigation, a legal challenge that did not halt Wednesday's operation.
The Alleged ₹178-Crore Excise Scam
The ED is reportedly probing an alleged ₹178-crore excise scam in Karnataka. The agency's investigation spans multiple jurisdictions, with Wednesday's searches carried out by teams from the ED offices in Bengaluru and Goa. The probe is understood to be examining how funds were allegedly siphoned through excise licensing and related processes, though the agency has not issued a formal public statement on the specific allegations as of Wednesday morning.
Political Dimension and Timing
The raids have acquired a sharp political dimension, arriving at a moment when the Karnataka government led by Chief Minister D.K. Shivakumar is marking 100 days in office. Opposition leaders are expected to raise pointed questions over the alleged excise irregularities and the involvement of a sitting cabinet minister's household in the probe.
This comes amid a broader pattern of central agency action in states governed by the Indian National Congress (Congress), a dynamic that has drawn recurring criticism from ruling parties at the state level and counter-charges from the Bharatiya Janata Party (BJP) at the Centre. The searches were still ongoing as of Wednesday morning, and further details from the ED are awaited.