Karnataka Deputy Chief Minister DK Shivakumar has added a dramatic twist to the gold smuggling case involving actor Ranya Rao and the state’s Home Minister G Parameshwara. Speaking to the media after visiting Mr Parameshwara at his residence, Mr Shivakumar claimed the money trail that led the Enforcement Directorate (ED) to the minister was linked to a wedding gift given to the actor.
“I just spoke to Parameshwara… there was a marriage. We are in public life, we run institutions. As a gesture to people we know, we give lots of gifts — Re 1, Rs 10, Rs 10 lakh, Rs 5 lakh. I think he might have also given a gift. It was a marriage, nothing wrong in it,” said Mr Shivakumar.
The ED is probing an alleged ₹40 lakh payment from an education trust to settle Ranya Rao’s credit card bill, reportedly on instructions from a powerful individual. The agency has conducted multiple raids on institutions linked to Mr Parameshwara under the Prevention of Money Laundering Act (PMLA) and is examining hawala-style fake transactions.
Speaking on the broader allegations against Ranya Rao, Shivakumar distanced political circles from any illegal activity:
“Whatever activities done by that lady is a personal issue, the law will take its course. As far as Parameshwar is concerned, we meet thousands of people, we don’t know who does what. We don’t want to interfere with the law and ED.”
Meanwhile, when approached by NDTV for comment on his cabinet colleague’s statements, G Parameshwara responded with a smile, saying:
“You ask DK Shivakumar.”
Asked about cooperating with the ED investigation, he replied: “Of course.”
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Parameshwara also confirmed that officials from the ED visited three institutions and a university linked to him, seeking five years’ worth of financial records.
“As a person who believes in the law of the land, I am prepared to cooperate with whatever comes out of their verifications or searches,” he said.
When questioned about the ₹40 lakh payment allegedly made from his institution’s account to pay Ranya Rao’s credit card bill, he said:
“I will respond after the investigation is completed.”
The case took a dramatic turn in March when Ranya Rao was arrested at Bengaluru airport after flying in from Dubai. Authorities seized 12 kg of gold bars worth over ₹12 crore, and she was charged under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA), 1974, which allows detention without bail for up to a year.
Though she was granted bail by a special court for the smuggling charge, she remains in custody due to COFEPOSA provisions.
The ED alleges a major money laundering breakthrough, stating that the education trust diverted ₹40 lakh to Rao’s credit card without any supporting vouchers or documentation.
With the case intensifying and multiple high-profile political figures now embroiled, the Karnataka government faces mounting scrutiny even as the Deputy CM attempts to frame the transaction as a routine gesture.
