Karnataka home minister’s educational trust under ED scanner in gold smuggling case

The Enforcement Directorate (ED) has uncovered a potential financial link between gold smuggling suspect Ranya Rao and an educational trust associated with Karnataka Home Minister G Parameshwara, sources in the agency's Delhi office said.

According to officials familiar with the investigation, a transaction amounting to ₹40 lakh was allegedly made from the trust to pay off Ranya Rao’s credit card bills.

“This payment was allegedly made at the behest of an influential individual,” an ED source said. “However, no supporting vouchers or documents were found to substantiate this transaction.”

The ED launched raids on May 21 at several institutions run by the trust, including the Sri Siddhartha Institute of Medical Sciences and Research Center and the Sri Siddhartha Institute of Technology in Tumakuru, as well as an office of the institute.

The Sri Siddhartha Institute of Medical Sciences in T Begur, Nelamangala, on the outskirts of Bengaluru, was also searched.

Home Minister Parameshwara serves as the chairperson of these institutions.

Sources said investigators traced a network of hawala operators who had transacted with Ranya and buyers who admitted to purchasing smuggled gold from her, which was then sold to jewelers.

The agency also found that one of the companies listed Ranya as a supplier of construction labor and had transferred several crores of rupees to her.

Further, the ED probe revealed the involvement of individuals and entities allegedly engaged in illegal foreign exchange dealings without approval from the Reserve Bank of India.

“Persons and entities doing illegal forex business, without RBI approval, have been unearthed, and several pieces of evidence found towards the same,” the source added.

Ranya, 33, was arrested on March 3 upon her arrival in Bengaluru from Dubai.

The Directorate of Revenue Intelligence (DRI) reported that she was found carrying 14.2 kg of foreign-origin gold bars worth ₹12.56 crore.

Parallel investigations are being carried out by the ED and the Central Bureau of Investigation (CBI).