In a dramatic escalation of political and legal tensions in Karnataka, Home Minister G. Parameshwara found himself at the center of a storm as the Enforcement Directorate (ED) conducted raids on educational institutions linked to him on May 21 and 22, 2025. The raids, part of a money laundering investigation tied to a high-profile gold smuggling case involving Kannada actress Ranya Rao, prompted Parameshwara to meet Chief Minister Siddaramaiah to discuss the unfolding situation. As the Congress-led state government accuses the central BJP government of orchestrating a politically motivated attack, and the opposition BJP demands accountability, the controversy has ignited debates about political vendettas, caste dynamics, and the intersection of public office and private institutions. This blog explores the details of the raids, the allegations, the political fallout, and the broader implications for Karnataka’s political landscape.
The Gold Smuggling Case: Ranya Rao’s Arrest
The controversy stems from a gold smuggling case that came to light on March 3, 2025, when Kannada actress Ranya Rao was arrested at Bengaluru’s Kempegowda International Airport. Acting on a tip-off, the Directorate of Revenue Intelligence (DRI) detained Rao after discovering she was carrying 14.2 kilograms of gold bars, valued at over ₹12.56 crore, upon her arrival from Dubai. Rao, the stepdaughter of a DGP-rank officer, K. Ramachandra Rao, became the focal point of a broader investigation into an alleged gold smuggling racket. The ED, taking cognizance of a joint complaint from the Central Bureau of Investigation (CBI) and DRI, registered a case under the Prevention of Money Laundering Act (PMLA) to probe potential financial irregularities linked to the smuggling operation.
The investigation took a significant turn when the ED uncovered a ₹40 lakh transaction from an educational trust linked to Parameshwara to clear Rao’s credit card dues, allegedly without supporting documentation or vouchers. This payment, reportedly made on the instructions of an “influential individual” described as a “politically exposed person,” raised suspicions of money laundering. The ED’s raids targeted 16 locations across Karnataka, including three educational institutions—Sri Siddhartha Medical College in Tumkur, Sri Siddhartha Institute of Technology in Tumkur, and Sri Siddhartha Institute of Medical Sciences in Nelamangala—along with the Sri Siddhartha Academy of Higher Education, where Parameshwara serves as chairman.
The ED Raids and Parameshwara’s Response
The ED’s searches, which began on May 21 and continued into May 22, 2025, focused on financial records spanning the past four to five years from these institutions. Parameshwara, a seasoned Congress leader and a prominent Dalit figure, maintained a composed stance, emphasizing his commitment to cooperate fully with the investigation. Speaking to reporters, he confirmed that ED officials had visited the institutions and requested financial documents, which he instructed his staff to provide. “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, declining to comment directly on the ₹40 lakh transaction or allegations of being targeted due to his Dalit identity. He stressed that speculation should be avoided until the investigation concludes.
On May 22, Parameshwara met Chief Minister Siddaramaiah at his Bengaluru residence to brief him on the raids and the circumstances surrounding them. While the exact details of their conversation remain undisclosed, Congress sources indicated that Parameshwara apprised the CM of the ED’s actions and the context of the allegations. The meeting underscored the Congress party’s solidarity with Parameshwara, with several senior leaders, including Deputy Chief Minister D.K. Shivakumar, Public Works Minister Satish Jarkiholi, and Health Minister Dinesh Gundu Rao, visiting his Sadashivanagar residence to express support.
Congress’s Defense: A Political Vendetta?
The Congress party has framed the ED raids as a politically motivated attack orchestrated by the BJP-led central government. Chief Minister Siddaramaiah described the raids as “vengeance politics” targeting Parameshwara, a senior Dalit leader, and questioned why similar scrutiny was not applied to BJP leaders like B.S. Yediyurappa, B.Y. Vijayendra, or H.D. Kumaraswamy. “They are targeting the poor, Dalit, and Congress leaders,” Siddaramaiah said at a press conference, suggesting that the raids were an attempt to undermine Parameshwara’s contributions to education and his stature within the Scheduled Caste (SC) community.
Deputy Chief Minister D.K. Shivakumar, who also serves as the Karnataka Congress president, offered a spirited defense, calling Parameshwara a “clean and honest man” with a distinguished political career. Addressing the ₹40 lakh transaction, Shivakumar clarified that it was likely a wedding gift of ₹15-25 lakh given by Parameshwara’s trust during a family event, a common practice among public figures managing charitable institutions. “We are in public life, and we often give gifts for marriages, school fees, or hospital bills. There’s nothing wrong with it,” he said, dismissing any suggestion that Parameshwara encouraged Rao’s alleged smuggling activities. He emphasized that Rao’s actions were her “personal issue” and that the law should take its course.
Congress general secretary Randeep Singh Surjewala echoed these sentiments, labeling the raids a “desperate attempt” by the BJP to cover up its own corruption and silence leaders championing marginalized communities. The party’s unified stance reflects its determination to counter the narrative of impropriety and protect Parameshwara’s reputation.
BJP’s Counterattack: Demanding Accountability
The opposition Bharatiya Janata Party (BJP) and Janata Dal (Secular) (JD(S)) seized on the raids to criticize the Congress-led government. Leader of the Opposition R. Ashoka linked the ED’s actions to the gold smuggling case, suggesting that the agency had evidence of smuggling proceeds being invested in Parameshwara’s educational institutions. “The ED is a government investigating agency. They might have got information on the gold smuggling money being invested in the Siddhartha Education institutions,” Ashoka said, calling for action against all involved. He also accused the Congress of mismanaging Karnataka’s finances, pointing to alleged scams in the Mysuru Urban Development Authority (MUDA) and Valmiki Development Corporation.
BJP leader Amit Malviya further fueled the controversy by sharing a photo of Parameshwara and Siddaramaiah attending Rao’s wedding, implying a deeper connection between the Congress leadership and the accused. The BJP’s narrative frames the raids as a necessary probe into financial irregularities, challenging the Congress’s claims of political victimization.
Parameshwara’s Political and Educational Legacy
G. Parameshwara, a veteran Congress leader, has been a significant figure in Karnataka politics since 1989, serving as an MLA, State Congress President for eight years, and Deputy Chief Minister from 2018 to 2019. As a Dalit leader, he has championed education and social welfare, particularly through the Sri Siddhartha Academy of Higher Education and its affiliated institutions, which provide medical and technical education to thousands, especially from underserved communities. His role as Home Minister, overseeing law and order, adds a layer of irony to the current scrutiny, as he navigates allegations while holding a position of significant responsibility.
This is not the first time Parameshwara’s institutions have faced investigation. In 2019, the Income Tax Department raided his properties, including the Sri Siddhartha Academy, over allegations of tax evasion and irregularities in medical college admissions, leading to the seizure of ₹4.52 crore in cash. Those raids, which Parameshwara also called politically motivated, were followed by the tragic suicide of his personal assistant, Ramesh, who cited harassment by I-T officials. The 2019 episode continues to shape perceptions of the current ED raids, with Congress leaders drawing parallels to earlier attempts to tarnish Parameshwara’s image.
The Ranya Rao Connection: Allegations and Context
Ranya Rao’s arrest has drawn significant attention due to her ties to influential figures. The DRI’s discovery of contact numbers of politicians and police officials in her phone, along with the wedding photo featuring Parameshwara and Siddaramaiah, fueled speculation about her connections. However, Shivakumar dismissed these as “political gossip,” and Parameshwara himself refrained from commenting directly on the allegations. On May 20, 2025, Rao and co-accused Tarun Kondaru Raju were granted conditional bail by a Bengaluru court due to the DRI’s failure to file a chargesheet within the stipulated period. However, Rao remains in custody under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA), which allows preventive detention for up to a year.
The ₹40 lakh payment from Parameshwara’s trust to Rao’s credit card bill remains a focal point of the ED’s probe. Sources suggest that the trust’s lack of documentation for this transaction, coupled with its alleged authorization by a “politically exposed person,” has raised red flags. Additionally, one company reportedly listed Rao as a supplier of construction labor, paying her several crores, further complicating the financial trail. The ED’s investigation also targets hawala operators and accommodation entry providers suspected of facilitating “fake” transactions linked to the smuggling racket.
Political and Social Implications
The ED raids have reignited discussions about the use of central agencies in Indian politics. Congress leaders, including Siddaramaiah and Surjewala, have accused the BJP of targeting opposition leaders, particularly those from marginalized communities, to weaken their political standing. The emphasis on Parameshwara’s Dalit identity underscores the sensitivity of the issue, with Congress framing the raids as an attack on a leader who has dedicated his career to uplifting weaker sections through education. Social media posts reflect polarized sentiments, with some supporting the ED’s actions as a step toward accountability, while others view them as an attempt to discredit a prominent SC leader.
The timing of the raids, coinciding with the Congress government’s celebration of two years in office, has added fuel to the political fire. The BJP’s critique of the Congress’s “bankrupt model of Karnataka” and references to other alleged scams, such as MUDA and Valmiki Corporation, suggest an effort to portray the state government as corrupt and ineffective. Meanwhile, Congress’s pledge to fight back “legally and politically” indicates a broader confrontation with the central government.
The Bigger Picture: Central Agencies and Political Battles
The controversy surrounding Parameshwara reflects a recurring pattern in Indian politics, where central agencies like the ED and CBI are accused of being weaponized against opposition leaders. Similar allegations have surfaced in cases involving Congress leader Sonia Gandhi and other non-BJP figures, prompting accusations of “vendetta politics.” The Karnataka government’s swift withdrawal of a CID probe into police lapses at Kempegowda International Airport in March 2025, following Rao’s arrest, further fueled speculation about political pressures influencing investigations.
For Parameshwara, the raids pose a significant challenge to his reputation and political career. His cooperation with the ED, coupled with the Congress party’s robust support, suggests a strategy to weather the storm through transparency and unity. However, the outcome of the investigation could have lasting implications for his role as Home Minister and the Congress’s image in Karnataka
Sponsored
FACTS Transcripts
Apply for a University document anywhere
https://www.factstranscript.com
Quick Transcripts for popular Universities, check your University name now and get started. We help you to get your transcript application online which is accepted for use of IRCC.
No DD, NO Paperwork. 100% Authentic, Reliable.
FACTS Transcripts Charges · Reviews · Assam Universities · Home · Know your University
