The Enforcement Directorate (ED) has disclosed details of searches conducted on September 9 and 10, 2026, in connection with a Foreign Exchange Management Act (FEMA) investigation involving Karnataka Public Works Department Minister Satish Jarkiholi and persons associated with him.
According to the agency, searches were carried out at 21 premises located across Bengaluru, Belagavi, Gokak and Kolkata. The premises were linked to Satish Jarkiholi, his daughter and Chikkodi MP Priyanka Jarkiholi, his son Rahul Jarkiholi, brother-in-law Y.D. Manjunath and other associates.
The ED stated that the searches resulted in the seizure of approximately ₹3.3 crore in cash, along with foreign currency valued at around ₹15 lakh. Investigators also recovered documents and digital devices that are being examined as part of the ongoing investigation.
The agency has alleged that documents obtained during the searches indicate possible overseas investments involving members of the Jarkiholi family in mining-related businesses in African countries, including the Democratic Republic of Congo and Zambia.
The ED has specifically alleged that Satish Jarkiholi held an approximately 40% interest in Magnitude Star SARL, described by the agency as a Congo-based gold-mining company. Documents concerning other mining ventures in Africa were also allegedly recovered during the searches.
The investigation further involves allegations concerning payments allegedly received in connection with Public Works Department contracts. The ED has claimed that Satish Jarkiholi received alleged bribes from Bharat Vanijya Eastern Pvt Ltd (BVEPL) in relation to securing PWD contracts.
According to the agency's allegations, a portion of the suspected proceeds was allegedly transferred through entities associated with Y.D. Manjunath and subsequently used for overseas investments. The ED has also alleged that substantial sums were invested in Congo through unauthorised channels.
The agency's disclosures form part of an ongoing investigation under FEMA. The allegations regarding undisclosed foreign investments, bribery, fund routing and unauthorised overseas transfers remain allegations made by the investigating agency and have not been established by a court of law. Further investigation by the Enforcement Directorate is continuing. CASansaar