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NEW DELHI: As the Enforcement Directorate (ED) continued its searches at institutions linked to Karnataka home minister G Parameshwara over a money laundering probe related to a gold smuggling racket, deputy chief minister DK Shivakumar described him as a “clean and honest man”.Shivakumar defended Parameshwara against allegations tied to actress Ranya Rao, whose bank accounts are under scrutiny for suspected fake transactions allegedly routed by hawala and accommodation entry operators. “He might have gifted around Rs 15-25 lakh to Rao during some family event or marriage, but that doesn’t mean he encouraged her to indulge in illegal activities like smuggling,” Shivakumar said. The ED is carrying out the searches under the Prevention of Money Laundering Act (PMLA). A case was registered earlier this year after the agency took cognisance of complaints filed by the CBI and Directorate of Revenue Intelligence (DRI) into a wider gold smuggling network across India, in which Rao’s name also emerged. “I spoke to Parameshwara, I visited him in the morning. He has given Rs 15-25 lakh, we are in public life, many run trusts. At a family event or marriage gifts might have been given. Will an influential person like Parameshwara encourage her to indulge in illegal things like smuggling?” Shivakumar asked, addressing reporters. “If she (Rao) has done anything wrong, let her be punished in accordance with law,” he added. “As far as Parameshwara is concerned, he is a law-abiding citizen, he is the Home Minister of the state, we are proud of him, he is a big leader. He was party president for eight years, he has done a lot of service to the state. He has been an MLA since 1989 with me, he has been a Minister. He is a clean and honest man. He might have given a gift for marriage, that’s all. He will answer.” Shivakumar also said he met Parameshwara personally and assured him of the Congress party’s full support.“He is attending cabinet today,” Shivakumar said. According to ED sources, an educational trust linked to Parameshwara is suspected of having diverted funds, including a Rs 40 lakh payment made towards Rao’s credit card bill. The payment, officials claim, was made allegedly on the instructions of a politically exposed individual and lacked supporting documentation or vouchers. Defending charitable actions by trusts, Shivakumar said, “Charitable institutions often help people… small charity might have been done for marriage, school fees, hospital bills, such help might have been done, I’m not denying it. Rest of the matter, let’s see what they (ED) will do.”
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