Pramesh S Jain
The Directorate of Enforcement (ED),Bengaluru Zonal Office,conducted search operations at 14 locations across Bengaluru,Mysuru and Belagavi on June 24 under the Prevention of Money Laundering Act (PMLA), 2002,in connection with an alleged corruption racket in the Karnataka Excise Department.
The searches were carried out following a case registered by the Karnataka Lokayukta Police against senior excise officials for allegedly collecting illegal gratification in exchange for processing and issuing various excise licences and amassing disproportionate wealth.
According to the ED,its investigation was strengthened by complaints and documents indicating that the accused public servants laundered illicit funds through the purchase of movable and immovable assets,benami transactions and investments in businesses operated through family members and associates.
The key individuals covered during the searches include excise officials Jagdish Nayak,K.M.Thammanna and Y.D. Manjunath,along with their family members, business partners and associates.
Alleged corruption network:
The ED claimed that the state excise department functioned as an organised syndicate involving public officials,intermediaries and private individuals engaged in systematic collection and distribution of bribes.
Investigators alleged that liquor outlets paid fixed monthly bribes to field-level excise officers.
Additional illegal payments were allegedly collected during licence renewals,transfers and issuance of fresh licences.
The money was reportedly pooled centrally and distributed through intermediaries who maintained unofficial records of collections and payouts.An alleged cash ledger documenting such transactions was seized during the searches.
The agency further alleged that the illicit proceeds were used by officials for personal expenses and investments in properties and businesses.
Liquor licences in family members’ names:
In a significant finding,the ED said several excise officials allegedly obtained liquor licences in the names of their family members or entities controlled by them and operated liquor businesses indirectly.
The agency suspects that income generated from these businesses was projected as legitimate earnings to integrate the proceeds of crime into the formal economy.
Seizures:
During the raids,ED officials seized digital devices, property-related documents and other incriminating material.
The searches led to the seizure of:
Cash worth approximately Rs.5.5 crore.
Gold jewellery valued at around Rs.7.8 crore.
Foreign currency worth about Rs.3.3 lakh.
The recoveries were made from premises linked to Y.D. Manjunath,his driver,family members and associates.
According to the ED,the total proceeds of crime seized in the case so far amount to approximately Rs.13.3 crore.
Further investigation is on.
