ED alleges PWD tender bribes funded Satish Jarkiholi, family’s African mining stakes
Mangalore Today News Network
Bengaluru, Sep 12, 2026: The Enforcement Directorate (ED) on Friday alleged that Karnataka Public Works Department (PWD) Minister and senior Congress leader Satish Jarkiholi held a nearly 40% stake in an African gold-mining company and that bribe money allegedly received in connection with PWD tenders was used to acquire foreign assets.
According to the ED, Jarkiholi allegedly held a stake in Magnitude Star SARL, a gold-mining company based in the Democratic Republic of Congo. The agency said it seized ₹3.3 crore in unaccounted cash and foreign currency, including US dollars and euros worth around ₹15 lakh.
The ED also alleged that Jarkiholi’s daughter and Chikkodi MP Priyanka Jarkiholi, his son Rahul Jarkiholi and other family members held stakes in foreign mining companies.
The searches, conducted under the Foreign Exchange Management Act (FEMA), covered 21 premises linked to Jarkiholi, his family members, brother-in-law Y Manjunath and other associates. The premises were located in Bengaluru, Belagavi, Gokak and Kolkata, and were searched on September 9 and 10.
The agency said searches were also conducted at the premises of officials associated with Bharat Vanijya Eastern Pvt Ltd (BVEPL), a private company that allegedly paid a “huge bribe” to secure a PWD tender. The ED alleged that the bribe money was subsequently used to acquire assets abroad.
The agency claimed that Jarkiholi’s daughter, son and sister Mahadevi Manjunath, who is married to Y Manjunath, had acquired stakes in several foreign entities, including Eldorado Mining Resources in the Democratic Republic of Congo and Nava Aurum Mining Ltd in Zambia.
Documents relating to several other foreign entities holding mining assets in Africa were also recovered during the searches, the ED said.
Simultaneous searches were carried out at multiple locations, including Jarkiholi’s residence in Gokak, his residence in Bengaluru’s Dollars Colony, his office-cum-residence on Crescent Road and properties in Belagavi.
The ED said it also found evidence indicating that substantial investments and expenses were made in cash in a Congolese entity through unauthorised channels.
According to the agency, the searches also yielded documents and digital devices allegedly linked to irregularities in the PWD and the collection of bribes from contractors, including BVEPL. The alleged bribe amounts were reportedly routed through various entities and bank accounts linked to influential individuals, including Jarkiholi’s brother-in-law Manjunath.
The ED also searched properties belonging to several of Jarkiholi’s close associates, including his officer on special duty (OSD) and personal assistant Malagouda Patil, as well as Raju Daragshetti, Vittal Parasannavar and Dr Girish Sonwalkar.