CM Siddaramaiah's economic advisor denies saying 'Karnataka is no: 1 in corruption'
Bengaluru, Apr 9 (PTI): Chief Minister Siddaramaiah’s economic advisor, Basavaraj Rayareddi, on Wednesday said he never claimed that "Karnataka is number one in corruption" during the tenure of the present Congress government.
Rayareddi issued a clarification after a few publications in Karnataka reported that, during a review meeting by a committee for the redressal of regional imbalance, he had told officers that Karnataka tops the country in corruption.
Accusing the media of twisting his statement made in Koppal, the Yelburga Congress MLA said he had only highlighted the perception that "Karnataka is branded as the most corrupt state", which, he said, is unfortunate.
"I did not say that corruption has increased during Chief Minister Siddaramaiah’s tenure. It’s a phenomenon that has been prevailing for the past two to three decades," Rayareddi told reporters here.
Insisting that he never made such a statement at a press conference, Rayareddi claimed, "I never said Karnataka is the number one corrupt state. I only said that Karnataka is branded as the most corrupt state. This impression has been created due to the poor governance by the previous BJP and JD(S) governments."
The MLA said that Chief Minister Siddaramaiah was doing commendable work by ensuring fair administration and was supported by dynamic ministers such as Krishna Byre Gowda and Priyank Kharge.
"Our government is doing good work. I support our Chief Minister because he is doing a good job. Whether he makes me a minister or removes me from this assignment (as economic advisor), I will continue to support him," Rayareddi said.
His remarks gave ammunition to the opposition, which has been alleging rampant corruption in the state.
BJP MLA C N Ashwath Narayan appreciated the Yelburga MLA for being candid in “accepting” that corruption has increased in Karnataka.
"We are happy that at least someone from within the Congress spoke about it," Narayan said.
In response, Rayareddi hit out at the BJP and JD(S), saying these two parties brought a bad name to Karnataka, and that some of their ministers had even gone to jail during their tenure.
Rayareddi said he was clear in his speech in Koppal on Tuesday that corruption had increased over the last few decades without blaming any one political party.
According to him, "corruption in North Karnataka is more prevalent compared to the old Mysuru region."
He also remarked that schools built these days collapse within five years, while those built during his father’s time remain intact for decades.
The MLA said he was concerned that corruption has escalated mainly due to electoral politics and felt that a public discussion on the issue was long overdue.
"I am happy that the media presented half the truth about what I said. At least this way, a discussion to curb corruption has begun," he quipped.
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CBI chargesheets 4 Chinese behind Rs 1,000 cr cyber crime racket; 111 shell companies unmasked
New Delhi (PTI): The CBI has filed a chargesheet against 17 people, including four Chinese nationals, and 58 companies for their alleged roles in a transnational cyber fraud network that siphoned off over Rs 1,000 crore through a sprawling web of shell entities and digital scams, officials said on Sunday.
After busting the racket in October, investigators unravelled a single, tightly coordinated syndicate that relied on an elaborate digital and financial infrastructure to run a range of frauds. These included misleading loan applications, fake investment schemes, Ponzi and multi-level marketing models, bogus part-time job offers and fraudulent online gaming platforms.
According to the probe agency's final report, the group layered the flow of illicit funds through 111 shell companies, routing about Rs 1,000 crore via mule accounts. One account received more than Rs 152 crore in a short span.
The shell companies, the CBI said, were incorporated using dummy directors, forged or misleading documents, fake addresses and false statements of business objectives.
"These shell entities were used to open bank accounts and merchant accounts with various payment gateways, enabling rapid layering and diversion of proceeds of crime," a CBI spokesperson said in a statement.
Investigators traced the origins of the scam to 2020, when the country was grappling with the COVID-19 pandemic. The shell companies were allegedly incorporated at the direction of four Chinese handlers -- Zou Yi, Huan Liu, Weijian Liu and Guanhua Wang.
Their Indian associates procured identity documents from unsuspecting individuals, which were then used to establish the network of shell companies and mule accounts to launder proceeds from the scams and obscure the money trail.
The investigation exposed communication links and operational control that, the agency said, nailed the role of Chinese masterminds running the fraud network from abroad.
"Significantly, a UPI ID linked to the bank accounts of two Indian accused was found to be active in a foreign location as late as August 2025, conclusively establishing continued foreign control and real-time operational oversight of the fraud infrastructure from outside India," the CBI statement said.
The probe found that the racketeers employed a highly layered, technology-driven modus operandi, using Google advertisements, bulk SMS campaigns, SIM-box-based messaging systems, cloud infrastructure, fintech platforms and multiple mule bank accounts.
"Each stage of the operation -- from luring victims to collection and movement of funds -- was deliberately structured to conceal the identities of the actual controllers and evade detection by law enforcement agencies," the spokesperson said.
The chargesheet names 17 individuals, including the four Chinese nationals, and 58 companies.
The investigation was launched on the inputs from the Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs, which flagged large-scale cheating of citizens through online investment and employment schemes, resulting in the arrest of three individuals in October.
"Though initially appearing as isolated complaints, detailed analysis by CBI revealed striking similarities in applications used, fund-flow patterns, payment gateways and digital footprints, pointing towards a common organised conspiracy," the agency said.
Following the October arrests, the CBI conducted searches at 27 locations across Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Jharkhand and Haryana, seizing digital devices, documents and financial records that were later subjected to detailed forensic examination.
