Bengaluru (PTI): As the ED continued searches at institutions linked to Karnataka Home Minister G Parameshwara in connection with a money laundering probe tied to gold smuggling case, Deputy Chief Minister D K Shivakumar came out strongly in support of his cabinet colleague, calling him a "clean and honest man".

Defending Parameshwara, the state Congress President said, "he might gifted around Rs 15-25 lakh to Rao during some family event or marriage, but that doesn't mean he encouraged her (actress Ranya Rao) to indulge in illegal activities like smuggling."

The Enforcement Directorate is conducting searches under the Prevention of Money Laundering Act (PMLA) targeting hawala operators and accommodation entry operators accused of routing "fake" transactions into Ranya Rao's accounts.

A PMLA case was registered a few months ago after ED took cognisance of a CBI and DRI (Directorate of Revenue Intelligence) complaint into a larger gold smuggling racket in India, including the case of Rao.

"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?" asked Shivakumar.

Speaking to reporters here, the Deputy CM said, "If she (Rao) has done anything wrong, let her be punished in accordance with law."

"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 said he met Parameshwara and assured him of the Congress party's full support.

"He is attending cabinet today," he added.

According to ED sources, an educational trust is suspected to have "diverted" funds and made a payment of Rs 40 lakh towards the credit card bill of Rao, allegedly on the instructions of an influential individual.

The sources claimed that the trust is linked to Parameshwara and the "influential" individual is a "politically exposed person". The payment for the credit bill lacked documentation or vouchers, they said.

Earlier 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."

Responding to a question on Chief Minister and AICC General Secretary Randeep Singh Surjewala comments on the ED raids, he said, "I stand by whatever my Chief Minister and AICC General Secretary have said. I can't take a separate stand, but whatever I have said is important."

Asked whether the party will protest against the raids, Shivakumar said the Congress will fight back legally and politically throughout the country, including the case involving Congress leader Sonia Gandhi.

"Sonia Gandhi has not done any personal property. We will definitely fight . We have faith in the court and the Court will give us justice," he added.

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Bengaluru (PTI): Karnataka Legislative Assembly on Wednesday witnessed uproarious scenes with BJP and JD(S) members protesting from the well of the House, demanding the resignation of Excise Minister R B Timmapur, alleging a multi-crore scam in his department.

The opposition on Tuesday had staged an all-night protest in the Assembly after Timmapur refused to quit over corruption charges against him and his son in liquor licensing and transfer of officials.

As the House met for the day, BJP and JD(S) MLAs, who were in the well of the House, shouted slogans, demanding Timmapur's resignation.

Leading the charge, Leader of Opposition R Ashoka alleged that in the Excise Department, bribes are being taken for granting licenses and for facilitating transfers.

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Wine merchants' association has alleged that the scam in the excise department is to the tune of about Rs 6,000 crore, and related audio recordings have been released, complaints have been filed with the Lokayukta, he said.

He also claimed that the "looted money" was being used by the ruling Congress to fund the party in election-bound states.

Stating that he has provided three pen drives in the House, containing audio evidence to prove alleged scam in the excise department, and there are statement made by an Excise Deputy Commissioner about commissions going to the Minister, Ashoka said, Thimmapur should immediately resign, and there should be an inquiry.

"I urge the Chief Minister to take the Minister's resignation immediately, let there be an inquiry, and after three months if he is proved innocent, take him back in to the ministry," he said, adding that K J George of Congress and K S Eshwarappa, earlier with BJP, had resigned as ministers in the past, following allegations against them.

Questions are being asked as to what is the CM's share in this scam, for not taking any action against the minister, who is facing charges, the opposition leader said, "Siddaramaiah preaches morality, but does he have any morality?"

Valmiki ST Development Corporation funds were used by the ruling Congress for Lok Sabha polls, he alleged.

"Now for Assam polls, Deputy CM D K Shivakumar is the Congress election in-charge and for Kerala K J George is the in-charge, and the fund used in these elections is the Karnataka Excise department's. We have been alleging that Congress is using Karnataka as its ATM, but now it is emerging that for the Congress leadership, Karnataka is a Reserve Bank to fund their elections."

Following this, BJP and JD(S) members protesting from the well of the House shouted slogans demanding the Minister Timmapur's resignation; some slogans were also raised against Congress leader Rahul Gandhi.

As his repeated attempts to convince the opposition to withdraw the protest failed, Speaker U T Khader allowed the Congress members to continue with the discussion on the resolution moved by Chief Minister Siddaramaiah in the Assembly on Tuesday, urging the Centre to immediately repeal the VB-G RAM G act and reinstate MGNREGA.

After some time, as the protest and sloganeering intensified, Deputy Speaker Rudrappa Manappa Lamani, who was on the Chair, adjourned the House for some time.