In a recent turn of events in Karnataka’s political landscape, the state’s Deputy Chief Minister, D.K. Shivakumar, has publicly expressed unwavering support for Home Minister G. Parameshwara, who is currently under scrutiny due to raids conducted by the Enforcement Directorate (ED). The raids, which targeted educational institutions linked to Parameshwara, are part of an investigation into alleged financial irregularities tied to a high-profile gold smuggling case. Shivakumar, a prominent leader in the state Congress, has described Parameshwara as a “clean and honest man,” emphasizing his long-standing contributions to Karnataka’s political and social spheres.
Background of the Controversy
The ED’s raids, which began on May 21, 2025, and continued into the following day, focused on several institutions associated with Parameshwara, including the Sri Siddhartha Institute of Technology, Siddhartha Medical College in Tumkur, Siddhartha Medical College in Begur, and the Sri Siddhartha Academy of Higher Education, where Parameshwara serves as chancellor. The probe is linked to a money laundering investigation involving Kannada actress Ranya Rao, who was arrested on March 3, 2025, at Bengaluru’s Kempegowda International Airport for allegedly smuggling gold worth over ₹12.56 crore. According to sources, the ED is examining financial transactions, including a reported ₹40 lakh payment from an educational trust linked to Parameshwara to clear Rao’s credit card bills, allegedly without proper documentation.
The investigation stems from a broader case initiated by the Central Bureau of Investigation (CBI) and the Directorate of Revenue Intelligence (DRI), which uncovered a gold smuggling racket. The ED’s actions have sparked a political firestorm, with the Congress party alleging that the raids are politically motivated, while the opposition Bharatiya Janata Party (BJP) claims the probe is justified due to potential links between smuggling proceeds and the institutions.
Deputy CM’s Defense of Parameshwara
Shivakumar, addressing the media on May 22, 2025, in Bengaluru, sought to clarify the nature of the financial transactions under scrutiny. He revealed that Parameshwara had informed him of gifting approximately ₹15-25 lakh to Ranya Rao, likely during a family event such as a marriage. Shivakumar emphasized that such gestures are common among public figures who manage trusts and institutions. “We are in public life, and we often give gifts during ceremonies. It could be ₹10,000, ₹5 lakh, or even ₹10 lakh. There’s nothing wrong with it,” he stated, distancing Parameshwara from any involvement in illegal activities. He further asserted that no politician would condone the alleged smuggling activities attributed to Rao, describing them as her “personal issue” and affirming that the law should take its course.
Shivakumar’s defense was not only personal but also rooted in Parameshwara’s long political career. He highlighted Parameshwara’s tenure as a Member of the Legislative Assembly (MLA) since 1989, his role as State Congress President for eight years, and his contributions as a minister. “I have known him for a long time—he is an honest and clean man,” Shivakumar said, adding that he met Parameshwara to assure him of the Congress party’s full support during this challenging time.
Parameshwara’s Response to the Raids
Parameshwara himself has maintained a composed stance amid the controversy. Speaking to reporters, he expressed his readiness to cooperate fully with the ED’s investigation. He confirmed that the agency had sought financial records spanning four to five years from the institutions and stated that he had instructed his staff to provide all necessary documents. “I believe in the law of the country, and whatever comes out of this verification, I am prepared to cooperate,” he said, refraining from commenting directly on the allegations linking the trust’s payment to Rao. Parameshwara emphasized the importance of waiting for the investigation’s outcome, noting, “Until then, everything is speculative.”
As the chancellor of the Sri Siddhartha Academy of Higher Education, Parameshwara has been associated with institutions that have played a significant role in providing education, particularly to underserved communities. The Congress party has highlighted his contributions to education and his status as a prominent Dalit leader, framing the ED’s actions as an attack on his legacy.
Political Reactions and Allegations
The raids have ignited a fierce political debate in Karnataka. Congress leaders, including Chief Minister Siddaramaiah and national general secretary Randeep Singh Surjewala, have accused the BJP-led central government of orchestrating the raids as an act of political vendetta. Siddaramaiah called the ED’s actions “politically motivated” and questioned why similar scrutiny was not applied to BJP leaders. Surjewala, in a post on social media, described the raids as a “frustrated reaction” by the BJP to the Karnataka government’s recent initiatives, such as granting ownership rights to 1 lakh Scheduled Caste (SC) and Scheduled Tribe (ST) families. He further alleged that the raids reflect a pattern of targeting leaders from marginalized communities.
On the other hand, BJP’s Leader of Opposition, R. Ashoka, suggested that the ED’s probe was investigating whether proceeds from the gold smuggling racket were funneled into Parameshwara’s educational institutions. He argued that the agency’s actions were based on credible information and dismissed Congress’s allegations of political targeting.
Parameshwara’s Political Journey
G. Parameshwara’s career is marked by significant milestones. A senior Congress leader, he has been a key figure in Karnataka politics for over three decades. As a Dalit leader, he has championed the cause of marginalized communities, both through his political roles and his work in education. His tenure as Karnataka’s Deputy Chief Minister from 2018 to 2019 and his long stint as Karnataka Pradesh Congress Committee (KPCC) president underscore his influence within the party. However, Parameshwara has also faced challenges, including allegations of being overlooked for the Chief Minister’s post due to caste biases, a claim he made in 2019.
The current ED raids are not the first time Parameshwara has faced scrutiny. In 2019, the Income Tax (I-T) Department conducted raids on his residence and institutions, investigating allegations of tax evasion and irregularities in medical college admissions. Those raids, which led to the seizure of ₹4.52 crore in cash, were also labeled as politically motivated by the Congress. Tragically, the 2019 raids were followed by the suicide of Parameshwara’s personal assistant, Ramesh, who left a note citing humiliation from the I-T officials. Parameshwara, at the time, expressed shock and denied any wrongdoing, a stance he maintains in the current situation.
The Bigger Picture
The ongoing ED investigation raises broader questions about the intersection of politics, governance, and investigative agencies in India. The Congress party’s allegations of political vendetta echo similar claims made during previous raids on opposition leaders, pointing to a perceived pattern of central agencies being used to target political adversaries. The timing of the raids, shortly after the Karnataka government’s announcement of significant welfare measures for SC-ST communities, has fueled speculation about their motives.
For Parameshwara, the raids represent a critical juncture in his career. As a senior leader and Home Minister, his reputation and political standing are under intense scrutiny. His decision to cooperate fully with the ED, coupled with the Congress party’s robust defense, suggests a strategy of transparency and resilience in the face of adversity.
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