Summary
- The Enforcement Directorate has allegedly uncovered a ₹40 lakh transaction between gold smuggling accused Ranya Rao and an education trust chaired by Karnataka Home Minister G Parameshwara.
- The ED conducted raids at three institutions under Sri Siddhartha Academy, citing unexplained fund transfers and suspected hawala links.
- The scandal reveals deeper intersections between smuggling networks, unaccounted wealth, and political influence in Karnataka.
A Smuggler, a Minister, and a Trail of Rupees: The New Face of Gold Crime
What began as a routine airport seizure has now turned into one of Karnataka’s most politically sensitive scandals. Ranya Rao, a 33-year-old arrested in March with 14.2 kg of gold worth ₹12.56 crore, is now at the center of a probe that has reached the state’s Home Minister, G Parameshwara.
According to sources in the Enforcement Directorate (ED), investigators have traced a ₹40 lakh transaction—allegedly used to settle Ranya Rao’s credit card bills—to an education trust run by the minister. Specifically, the trust is part of the Sri Siddhartha Group, which runs multiple medical and technical institutes in Tumakuru and Bengaluru.
No direct documentation has been found to explain the payment, and ED officials are probing whether it was executed “at the behest of an influential individual.” The institutions themselves have so far denied wrongdoing, but the link between a public figure’s educational empire and a transnational smuggling network has set off alarm bells across law enforcement and political circles.
VIDEO | On ED raiding educational institutions linked to Karnataka Home Minister G Parameshwara, state minister Ramalinga Reddy (@RLR_BTM) says, "I don't have any idea regarding money transactions but since 11 years, we are seeing that the BJP government is misusing ED, CBI, and… pic.twitter.com/zmQQEBFGcI
— Press Trust of India (@PTI_News) May 22, 2025
How a Dubai Flight Opened Pandora’s Box
- Ranya Rao was arrested flying into Bengaluru with over ₹12 crore worth of smuggled gold.
- Forensic analysis of her phone led investigators to hawala links, gold buyers, and shell transactions.
- One company listed her as a “construction labour supplier” while routing crores through her.
- The pattern of transactions suggests systematic laundering beyond just airport smuggling.
Ranya Rao’s arrest at Kempegowda International Airport on March 3 seemed like a typical case of high-stakes smuggling. But what followed broke that illusion. Forensic analysis of her phone exposed a network of hawala handlers, illegal forex dealers, and high-volume buyers across Karnataka.
As the ED and CBI dug deeper, they found that the proceeds of her gold smuggling were not just laundered through anonymous shell firms, but were being paid out through high-value educational and business institutions—some allegedly under political patronage. In one case, a company disbursed crores to her under the false claim of “labour supply” for construction projects.
The absence of formal vouchers or documentation for the ₹40 lakh payment linked to Parameshwara’s trust raises further suspicion. Was this a favor? A laundering channel? Or something else entirely?
Education or Laundering? Institutions Under Scrutiny
- The ED raided Sri Siddhartha Institute of Medical Sciences, Siddhartha Institute of Technology, and a Tumakuru-based office.
- These institutions fall under a trust chaired by Home Minister G Parameshwara.
- Investigators allege fund diversion from these institutions to cover personal expenses for the accused.
- The probe adds to growing concerns about education trusts being used as conduits for black money.
At the center of this unfolding story is the Sri Siddhartha Education Trust—one of Karnataka’s most prominent private educational bodies. Founded decades ago with the mission to provide affordable higher education, the trust has long enjoyed political influence, given Parameshwara’s role as its chairperson.
But investigators now allege that its institutions—specifically the medical and engineering colleges—were used to divert funds toward illegal ends. The ₹40 lakh transfer linked to Ranya Rao’s credit card bill is just the most visible clue. ED officials suspect that education trusts, operating with minimal financial oversight, are increasingly becoming tools for laundering proceeds of illegal trade, including gold smuggling.
Critics argue that these revelations aren’t isolated. The blend of education, philanthropy, and political power often creates opaque financial ecosystems where funds can be moved without traceable invoices or market scrutiny.
Political Heat Rising, but Accountability Remains Elusive
In a state where education, money, and politics are deeply entwined, the Ranya Rao case presents a textbook challenge to law enforcement and transparency. While ED raids and forensic probes continue, the core issue remains: how much did the leadership of these institutions know? And if the funds were moved at someone’s “behest,” who gave the orders?
Home Minister Parameshwara has so far remained silent. No official statement has emerged to clarify the nature of the transaction. Meanwhile, opposition parties have begun to capitalize on the scandal, calling for an independent judicial probe and accusing the Congress-led state government of shielding allies.
As with many scandals involving white-collar crime in India, the playbook is familiar: a high-profile arrest, sensational discoveries, political distancing, and eventually—silence. But the Ranya Rao case may not fade so easily. With multiple agencies involved and money trails stretching across Dubai, Tumakuru, and Bengaluru, the story is far from over.
