Congress leader tipped off ED against Karnataka minister in gold smuggling case: H.D. Kumaraswamy

Union Minister H.D. Kumaraswamy has alleged that Karnataka Home Minister G. Parameshwara was being “deliberately” targeted in a gold smuggling case and pointed to a “conspiracy” by a “powerful” Congress leader in the state.

 

Earlier this week, the enforcement directorate (ED) conducted raids on the educational institutions owned by Parameshwar, including the Siddhartha Institute of Technology and Siddhartha Medical Colleges in Tumakuru and Begur, as part of the investigation into a money laundering case linked to the gold smuggling racket involving actor Ranya Rao.

 

Ranya Rao, the stepdaughter of senior IPS officer Ramachandra Rao (who is now on long leave), was arrested by the Department of Revenue Intelligence (DRI) sleuths from the Kempegowda International Airport, Bengaluru, on March 3, 2025, on her return from Dubai. 

 

The authorities seized 14.2kg of 24-karat gold worth over ₹12.56 crore. Her frequent trips (52 trips) to Dubai between 2023 and 2025 had put her under the DRI scanner. Following her arrest, the police recovered ₹2.06 crore in gold jewellery and ₹2.67 crore in cash from her Bengaluru residence.

On May 20, 2025, a Bengaluru Special Court granted default bail to Ranya Rao and co-accused Tarun Kondaru Raju, after the DRI failed to file a chargesheet within the 60-day limit. However, she remained in custody under the Conservation of Foreign Exchange and Prevention of Smuggling Activities (COFEPOSA) Act, 1974 (preventive detention), citing risk of continued smuggling activity. 

 

The ED conducted raids in Tumakuru on suspicion of Hawala transactions linked to the smuggling case. A jeweller, Sahil Sakariya Jain, is also under scrutiny for allegedly helping dispose of 49.6kg of smuggled gold worth ₹40.14 crore and facilitating hawala.

 

“This is a conspiracy against Parameshwar and part of the ongoing power tussle within the Congress party. The real motive is to sideline Dalit leadership and elevate a rival leader to the Chief Minister’s post. It is a conspiracy by a powerful Congress leader. Parameshwara’s recent political activity—an effort to organise a Dalit convention and engage with national leadership might have triggered this backlash. Cooperation minister Rajanna, in the state assembly, had hinted that a politically influential figure was involved in surveillance and manipulation tactics,” said Kumaraswamy while speaking to reporters at his residence in Delhi.

 

The JDS leader wondered if the Intelligence department, which directly reported to Chief Minister Siddaramaiah, was “genuinely” unaware of these developments.

 

“The gold smuggling case is being used as a tool to damage Parameshwara’s credibility and derail his leadership ambitions. The person aiming to succeed Siddaramaiah as the chief minister is orchestrating the entire episode from behind the scenes,” added Kumaraswamy.

 

Meanwhile, Shivakumar, who rushed to meet Parameshwara at the latter’s residence in Bengaluru following the raids, stated that the Home minister had gifted around ₹15-25 lakh (to Ranya).

 

“I visited his house and spoke to him. He has given ₹15-25 lakh as gift. Many of us (politicians) run public trusts and give money. Similarly, Parameshwara might have given the money during a family event or a wedding. Do you think an influential person like him would give money and ask her to indulge in gold smuggling or do anything illegal with it?,” asked Shivakumar.

 

The KPCC chief also praised Parameshwar as a “clean, honest and a law-abiding” leader. “He has been my colleague since 1989, and he is a law-abiding citizen, our home minister and a big leader. He has served as the party president for eight years. He will answer all the queries by the ED. I have told him that I will stand by him,” added Shivakumar.

 

Interestingly, Union Minister Prahlad Joshi seconded Kumaraswamy and said, “A faction of the Congress is the actual trigger for the ED raids. This faction has sent information and written to ED seeking against Parameshwar. Siddaramaiah is pretending not to know anything about this. ED will act as per law based on the information received.” 

 

“The ED officers visited our institutions and asked for accounts of the last five years. I asked my staff to cooperate in the investigation,” said Parameshwara.

 

The ED is scrutinising documents allegedly linked to hawala transactions. In its statement, ED has revealed that there is a key financial link of an educational institution that had diverted ₹40 lakh towards payment of the credit card bill of Ranya Rao. This transaction was carried out based on oral instruction from an influential person.

 

Shivakumar’s brother and former MP DK Suresh slammed Joshi, saying he was a politician who indulged in politics of “instigating” one against the other and also dismissed Kumaraswamy’s allegations, stating that the minister was known for his “bundle of lies”.

 

Industries MB Patil dared Joshi to reveal the name of the Congress leader who has allegedly given the documents (to frame Parameshwar) to ED.

“How does Joshi know all this? Is the ED sharing information with Joshi or working under his directions?” asked Sharan Prakash Patil. 

India