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Karnataka Government Orders Probe into Ranya Rao Gold Smuggling Case

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Manas Dasgupta

NEW DELHI, Mar 11: As the case boiling into a political controversy with the BJP alleging involvement of a senior Congress minister in the gold smuggling case, the Karnataka government has ordered an inquiry into the alleged misuse of protocol and privileges by Kannada actor Ranya Rao and any possible role of her DGP rank stepfather Ramachandra Rao, currently the managing director of the Karnataka State Police Housing Corporation.

The government has appointed senior IAS rank officer Gaurav Gupta, an additional chief secretary, to investigate the protocol violation by the actress in bypassing security checks while smuggling gold at the Kempegowda International Airport (KIA) and also the possible role of her stepfather.

In a separate order, the government has also directed the Criminal Investigation Department (CID) to probe the possible negligence and dereliction on the part of police personnel and submit a report. The government has also asked Mr Gupta to submit his report within a week.

The actress was arrested by the Directorate of Revenue Intelligence (DRI) after she was caught at the KIA with 14.2 kg of gold bars worth ₹12.5 crore after landing from Dubai on March 3. Following DRI inputs, the Central Bureau of Investigation (CBI) also registered a case to probe gold smuggling racket with international links.

The order dated March 10 stated, “A report on how Ranya managed to bypass security checks at the airport, how she availed and misused privileges reserved for top officials, and whether there is any role of the Karnataka State Police Housing Corporation MD Ramachandra Rao has been asked to be submitted within a week.”

Top police officers, Karnataka secretaries, the Department of Personnel, and Administrative Reforms have been instructed to provide all necessary documents and assistance to the authorities concerned for the inquiry.

The government order said, “It has been reported by the media that Ranya Rao was apprehended by officials of the DRI while illegally smuggling gold bars from Dubai to Bengaluru. During the investigation, it has been reported that Ms Ranya Rao misused protocol privileges to carry out this illegal activity,” the Government Order stated.

It further said that media reports state that she used the airport protocol facilities provided to senior police officials, by using the name of her father and allegedly used these privileges to bypass security checks at the airport. “The government considers it necessary to investigate the circumstances and factors that led to the misuse of protocol privileges, as well as the involvement of Dr Ramachandra Rao in this case,” the order stated.

With the two fresh orders of the government dated March 10, the case has gained further prominence and is probably one of the first few cases where the DRI, CBI, CID and a senior IAS officer are probing simultaneously.

Ms Rao, from whom the DRI is claimed to have recovered smuggled gold worth over Rs 14.56 crores, and was nabbed at Bengaluru Airport, on Monday broke down in the court and alleged that she was “traumatised and emotionally broken.” Rao claimed that she has been “verbally tortured and threatened” in the DRI custody.

The DRI, which is probing the case, suspects that Ranya Rao has strong links in Dubai, who managed to smuggle the gold bars into the airport and then handed them over to her. According to the agency, Rao wrapped the gold bars around her inner thighs, shin, and waist inside the airport in Dubai. She used tape and crepe bandage to wrap them around her body parts, they said. It suspects that she is not only a carrier, but is also involved in the nexus.

Upon landing at the Bengaluru International Airport, a state protocol officer would go to the immigration and pick up Rao’s luggage for fast-track security clearance. This way, she would skip frisking or going through metal detectors at the airport upon landing (unless security personnel are suspicious, people are not thoroughly scanned upon landing).

“It’s a clear case of protocol being misused,” said DRI sources. The DRI further said the three recorded statements of the actor have incriminating details. It said she has not denied most of the charges. Others are also involved in the case and she needs to be questioned further on that, it added. Rao’s mobile and laptop have been recovered, but the DRI is yet to gain access to them as they are locked. The actor also has bruise marks on her face, the agency said.

Ranya Rao was under the radar because of her frequent travel to Dubai. In one year, she allegedly went to Dubai 30 times and four times in just 15 days. After she was arrested, gold jewellery worth Rs 2.06 crore and Rs 2.67 crore in cash was recovered from her home in Bengaluru by the Bengaluru Directorate of Revenue Intelligence during raids. Rao is married to Jatin Hukkeri, who was also frequently travelling to Dubai with the actress. This is one of Karnataka’s biggest gold seizures in history.

The Ranya Rao gold smuggling case boiled over into a political controversy after BJP State unit president B.Y. Vijayendra on Monday alleged involvement of a “prominent Minister in Siddaramaiah’s government.” Without taking any names, Mr Vijayendra said media reports of a Minister’s involvement in “one of the biggest gold heists in recent times” was no surprise, as she could not have smuggled gold worth crores by violating protocols if not for the direct support of influential figures in the Karnataka government.

In a post on X, Mr Vijayendra said: “As Chief Minister Siddaramaiah would have received intelligence reports pinpointing the suspected Ministers and their involvement, any attempt by the government to shield those responsible will only backfire, especially with the CBI now stepping in. The truth will come out, and any cover-up will only further expose the government’s complicity in this grievous offence.”

Mr Vijayendra’s comments came a day after the Karnataka Industrial Area Development Board (KIADB) released a statement about the allotment of land in February 2023 by the previous BJP government to Ranya Rao to set up a steel plant in Tumakuru. KIADB CEO, Mahesh clarified that M/s Ksiroda India Pvt. Ltd., a company linked to Ranya Rao, was allotted 12 acres of land on January 2, 2023, when the Basavaraj Bommai-led BJP government was in power.

The land, located in Sira Industrial Area, Tumakuru district, was approved for allotment during the 137th State Level Single Window Clearance Committee meeting held on the same day. According to a press release, the company had submitted a proposal to set up a manufacturing unit for Steel TMT bars, rods, and allied products, with an investment of ₹138 crore. The project was expected to generate approximately 160 jobs. However, the project was automatically cancelled because the project conditions were not adhered to.

But speaking in Belagavi, Murugesh Nirani, the then Industries Minister and BJP leader, claimed that there were no violations of any rules during the transfer of land to a firm owned by Ranya Rao in 2023.