Kannada actor Ranya Rao's stepfather, Ramchandra Rao, who had been sent on compulsory leave, has been reinstated as Director General of Police, Directorate of Civil Rights Enforcement and his leave has been withdrawn.
In a notification, Government of Karnataka stated, "The order of compulsory leave with respect to Dr K Ramachandra Rao, IPS is hereby withdrawn and the officer is posted with immediate effect and until further orders as Director General of Police, Directorate of Civil Rights Enforcement in the upgraded vacant post."
"The post of Director General of Police, Directorate of Civil Rights Enforcement is declared equivalent in status and responsibilities to the cadre post of Director General of Police, Criminal Investigation Department, Special Units & Economic offences, Bengaluru under Rule 12 of IPS (Pay) Rules 2016 as included in Schedule II of the said rule," Under secretary to government, Department of Personnel and Administrative Reforms said.
DGP Ramchandra Rao was sent on compulsory leave in March after the actress was arrested in a gold smuggling case.
Rao, who is due to retire in May 2026, was sent on compulsory leave in May 2025 after his step-daughter Ranya was arrested at the Kempegowda International Airport, allegedly with Rs 12.56 crore worth of unaccounted-for gold bars.
The 34-year-old actress was accused of smuggling gold from Dubai by using special privileges accorded to family members of senior IPS officers.
"K V Sharath Chandra, IPS (KN-1997) Additional Director General of Police, Recruitment is placed in Concurrent Charge of the post of Chairman & Managing Director, Karnataka State Police Housing & Infrastructure Development Corporation Ltd, Bengaluru with immediate effect and until further orders, Dr K Ramachandra Rao, IPS sent on compulsory leave," said a Karnataka Government order issued on March 15.
Meanwhile, the Enforcement Directorate (ED) has attached immovable properties worth Rs 34.12 crore in connection with a case of transnational gold smuggling and money laundering in a case linked to actress Harshavardini Ranya, alias Ranya Rao and her associates.
As per the ED, the attached assets include properties located in the Bengaluru and Tumkur districts of Karnataka. The action was taken under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, and executed by the ED's Headquarters Investigative Unit-II, New Delhi. The properties have been attached under Section 5(1) of the Prevention of Money Laundering Act as equivalent value assets corresponding to untraced proceeds of a crime unearthed during the investigation.
ED initiated its investigation based on the First Information Report dated March 7, registered by the Central Bureau of Investigation (CBI) under Section 61(2) of the Bharatiya Nyaya Sanhita, 2023 (corresponding to Section 120B IPC) and Sections 7 & 12 of the Prevention of Corruption Act, 1988, following a complaint by the Directorate of Revenue Intelligence (DRI).
The FIR pertained to the interception of two foreign nationals, an Omani and a UAE citizen, at Mumbai International Airport with 21.28 kg of smuggled gold of foreign origin, valued at Rs 18.92 crore.
Earlier, on March 3, 2025, the DRI had intercepted Ranya Rao at Kempegowda International Airport in Bengaluru with 14.213 kg of concealed 24-carat foreign-origin gold valued at Rs 12.56 crore.
A search of her residence resulted in the recovery of Rs 2.67 crore in unaccounted Indian currency and gold jewellery worth Rs 2.06 crore.
The ED investigation has revealed that Ranya Rao, in active collusion with Tarun Konduru Raju and others, orchestrated a well-structured operation for smuggling gold into India.
"Gold was procured from suppliers based in Dubai, Uganda, and other jurisdictions, and payments were made through hawala channels in cash, thereby circumventing legal financial systems. False customs declarations were filed in Dubai (Dubai Customs deceleration attached for reference), fraudulently declaring the destination of gold shipments as Switzerland or the USA, while the actual travel of the gold smugglers was to India," said the ED in a statement.
"Dual sets of travel documents were used-- one for the declared export destination and the other for their actual arrival in India, to evade scrutiny and facilitate smuggling through Indian airports," ED said.
Further, ED investigation has revealed that the smuggled gold was then sold within India in cash to jewellers and other local entities, and the proceeds were subsequently laundered through further hawala remittances abroad to finance repeat consignments for smuggling more gold into India.
"Evidence retrieved from the seized mobile phones and forensic extraction of digital devices has revealed detailed coordination with foreign gold suppliers, hawala operators, and Dubai-based customs agents. Ranya Rao's involvement in generating, possessing, and circulating proceeds of crime was further corroborated by her digital footprint, which includes invoices, export declarations, foreign remittance records, and recorded chats establishing her active role in the smuggling syndicate," said the ED.
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