ED raids excise officials in Karnataka and seizes assets worth ₹13.3 crore

Enforcement Directorate officials searched the residence of Additional Excise Commissioner Y. Manjunath, who is the brother-in-law of Karnataka Minister for Persons with Disabilities Satish Jarkiholi, in Belagavi on June 24, 2026. Photo credit: SPECIAL ARRANGEMENT

The Enforcement Directorate (ED), Bengaluru regional office, on Wednesday conducted searches at 14 locations in Bengaluru, Mysore and Belagavi under the Prevention of Money Laundering Act (PMLA) 2002 in connection with an alleged corruption scam in the Karnataka Excise Department.

The searches were conducted following a case registered by the Karnataka Lokayukta Police against senior excise officials for allegedly collecting favors in exchange for processing and issuing various excise licenses and amassing assets disproportionate to their sources of income.

According to the ED, its investigation was strengthened by complaints and documents which indicated that the accused laundered funds through purchase of movable and immovable assets, benami transactions and investments in businesses run through family members and associates.

Key persons targeted by the probes include Excise officials Jagdish Nayak, KM Thammanna and YD Manjunath along with their family members, business partners and associates.

The ED alleged that the department was functioning as an organized syndicate involving public officials, middlemen and private individuals engaged in systematic collection and distribution of bribes.

Investigators alleged that liquor stores paid fixed monthly bribes to police officers in the field. Other illegal payments were allegedly collected during license renewals, transfers and issuance of new licenses. The money was allegedly pooled centrally and distributed through intermediaries who kept unofficial records.

During the searches, an alleged cash book evidencing such transactions was seized. The agency further alleged that the illegal proceeds were used by officials for personal expenses and investments.

In a major finding, the ED said several officials allegedly obtained liquor licenses in the names of their family members or entities controlled by them and indirectly ran the businesses.

The agency suspects that revenue from these deals has been projected as legitimate earnings to integrate the proceeds of crime into the formal economy.

During the raids, ED officials seized digital devices, property-related documents and other incriminating material. The searches led to the seizure of ₹5.5 million in cash, gold jewelery worth around ₹7.8 million and ₹3.3 lakh in foreign currency.

The recovery was done from premises associated with YD Manjunath, his driver, family members and associates.

According to the ED, the total proceeds of crime seized so far are around ₹13.3 crore.

Published – 25 Jun 2026 21:28 IST