Bengaluru (PTI): Following allegations that his office tried to bribe some journalists by sending Rs 1 lakh cash gifts to them on Deepavali, along with sweet boxes, Karnataka Chief Minister Basavaraj Bommai on Sunday denying his role, called it a "lie" and part of the "Congress' toolkit".

The Chief Minister said someone has filed a complaint before the Lokayukta on the issue, and let the investigation happen and truth come out.

The Congress on Saturday alleged that Bommai tried to bribe journalists by sending Rs 1 lakh cash gifts to them on Deepavali and demanded the registration of a graft case as well as his resignation. It also sought for judicial inquiry into allegations.

"This is the result of Congress' tool kit, they are trying to create a lie. I have not given any instructions to anyone (to give cash gifts)," Bommai said in response to a question regarding Deepavali cash gifts to journalists from his office, Congress' tweets in this regard and journalists in general are being looked at like "thieves" because of this.

Speaking to reporters here, he said when the Congress was in power, what gifts were given by various people are "clearly known", and the media had reported it, whether it was iPhones or laptops or gold coins.

"What morality do they (Congress) have? Above all, someone has filed a complaint in this regard to Lokayukta and Lokayukta will investigate. It is not right to interpret that the gifts were given or all journalists have taken it. Yesterday, a Congress spokesperson interpreted it very wrongly. I condemn it," he added.

Reiterating that he had given no instructions to send out any gifts for journalists, Bommai further in response to a question, whether he will order for any inquiry as his own office is facing an allegation, said, "The matter is before the Lokayukta, it has a police agency, let the truth come out from the inquiry." A non-government organisation 'Janaadhikara Sanghasha Parishath' has lodged a complaint with the Karnataka Lokayukta against the Chief Minister alleging that he paid a bribe to the journalists in the guise of Deepavali gift.

The complainants R Adarsh Iyer, Prakash Babu B K and Vishwanath V B of the JSP said chief reporters of several media houses were paid bribes by the Chief Minister through his close aide, and some of them informed their higher-ups in their organisations and returned the money. 

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New Delhi, Aug 13 (PTI): The Enforcement Directorate said on Wednesday it has arrested a woman, who claims to be an actor and a cosmetologist, under the anti-money laundering law in a case of alleged fraud and misrepresentation.

The agency said the purported links of the woman, Sandeepa Virk, with a Reliance Group executive, Angarai Natarajan Sethuraman (President, Corporate Affairs), are also under its scanner. Sethuraman, in a statement, denied any connection with Virk or any transactions related to her.

Virk was taken into custody under the Prevention of Money Laundering Act (PMLA) on Tuesday after searches were conducted against her and her associates in Delhi and Mumbai over the last two days.

A special court sent her to the ED's custody till August 14, the agency said. The woman claims to be the owner of a skin care products selling website named hyboocare.com, which the ED claimed was a "front" for money laundering.

She and her associates are being probed for allegedly exerting undue influence through "misrepresentation" and "defrauding" individuals by soliciting money under false pretences.

According to an Instagram ID of Virk, she is an actor and entrepreneur and the founder of the said website.

The federal agency said in a statement that the woman was also "in touch with" Sethuraman, former director of erstwhile Reliance Capital Limited.

She was communicating with him regarding "illegal liaisoning", the ED claimed, adding that the searches at Sethuraman's residence "confirmed" these allegations.

"Besides, diversion of funds for personal benefit has also been unearthed during the course of the search action," it said.

The ED alleged that public money worth about Rs 18 crore belonging to Reliance Commercial Finance Limited (RCFL) was disbursed to Sethuraman in 2018 by "flouting" prudent lending norms.

The funds were lent under terms that allowed a deferment of the principal amount as well as the interest, with multiple waivers granted and no due diligence conducted, it said.

The ED claimed that besides this, a home loan of Rs 22 crore was provided by Reliance Capital Limited by "violating" the prudential norms. "A large part of these loans are seen to have been eventually siphoned off and remained unpaid," it alleged.

Sethuraman, in a statement, dismissed the allegations as "baseless". He denied any connection with Virk or any transactions related to her.

Detailing about Virk's web portal, the agency said it purportedly sold FDA-approved beauty products. However, the ED said the products listed on the website have been found to be non-existent and the portal lacks a user registration option and is plagued by persistent payment gateway issues.

A scrutiny of the website uncovered minimal social-media engagement, an inactive WhatsApp contact number and an absence of transparent organisational details, all of which reinforce the finding of "non-genuine" commercial activity, the ED claimed.

"These factors, including limited product range, inflated pricing, false claims of FDA approval and technical inconsistencies, indicate that the website serves as a front for laundering funds," it said.

Another social media-hosted bio data of the woman said she is a certified cosmetologist.

The ED said several "incriminating" documents were seized during the searches and the statement of a man named Farrukh Ali, stated to be an associate of Virk, was recorded.

The money-laundering case stems from an FIR lodged by the Punjab Police.

Sethuraman said that the home loan he received from Reliance Capital was granted following due process and was secured by the property offered as collateral.