CM Ambitions On Hold? ED Raids Put Spotlight On Karnataka HM Parameshwara’s Political Future

Karnataka Home Minister G Parameshwara

The Enforcement Directorate (ED) conducted raids on Wednesday at 16 locations linked to Karnataka Home Minister G Parameshwara, including several educational institutions — dealing a blow to the Congress leader, who has long projected himself as the Dalit face for the Karnataka Chief Minister’s post.

Parameshwara has said he will fully cooperate with the ED. However, the raids — and details reportedly emerging from them — are politically significant. ED sources claim that the trust running the educational institutions paid Rs 40 lakh to settle Kannada actor Ranya Rao’s credit card bills. This revelation could be particularly damaging for the senior Congressman, who is presently the Karnataka Home Minister and had, in the earlier Congress–JDS coalition government, served as Deputy Chief Minister.

Some Congress leaders speculate that Parameshwara is being targeted because he is seen as a potential CM candidate. Parameshwara, however, has refused to comment on whether the raids are politically motivated.

But does this episode hurt Parameshwara’s chances of succeeding Siddaramaiah as his choice of candidate if there’s a leadership change in Karnataka?

Senior political analyst Sandeep Shastri says Parameshwara now finds himself cornered.

“He’s fighting with his back to the wall. These institutions have been on the ED’s radar for some time. Now that this is linked to the Ranya Rao case, it becomes harder to wriggle out. It’s a challenge," he said.

When the Congress came to power in 2023, there was an informal understanding that Siddaramaiah would eventually hand over the post to Deputy CM DK Shivakumar during the five-year term. However, Congress insiders say there is currently no move from the high command to enforce a change. If the issue arises, they say Siddaramaiah is more likely to recommend Parameshwara — a Dalit leader — as his successor than Shivakumar.

On whether the crisis could force Parameshwara to resign now, Shastri said that would depend on how the party handles the situation.

When asked whether the Congress would support him the way it backed Siddaramaiah during the MUDA case, Shastri said: “I doubt it. There is a big difference. The MUDA case didn’t involve gold smuggling or financial irregularities tied to hawala routes. The stakes are higher here, and so are the political risks."

Among the premises searched were Sri Siddhartha Institute of Technology, Siddhartha Medical College in Tumakuru, Siddhartha Medical College in Begur, and the Sri Siddhartha Academy of Higher Education — a deemed-to-be university where Parameshwara serves as Chancellor.

Parameshwara told the media that the ED had sought records spanning four to five years. “I have asked the staff to cooperate and provide the documents they need. They’ve questioned our accounts section staff as well," he said.

On the Rs 40 lakh allegedly paid towards Ranya Rao’s credit card bills, he said, “I don’t want to comment at this point. Let the investigation be completed. They must give us a report. I won’t react until then."

Ranya Rao, stepdaughter of former DGP K Ramachandra Rao, was arrested on 3 March at Bengaluru International Airport with 14.2 kg of gold bars worth Rs 12.56 crore. Though she was granted bail after the ED failed to file a chargesheet within the stipulated time, she remains in custody under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA).

Parameshwara found support in Deputy CM D.K. Shivakumar, who defended him and called him a “clean and honest man."

“He might have given Rs 15–25 lakh to Ranya Rao for a family function or wedding. That doesn’t mean he encouraged any illegal activity," Shivakumar told reporters. After visiting Parameshwara’s residence, he added, “We are public figures. We give gifts for marriages and events — Rs 1 lakh, Rs 10 lakh, Rs 5 lakh, Rs 10 lakh. I believe this was a gift. There’s nothing wrong with it."

Another senior political observer, Prof. Chambi Puranik, said Parameshwara is “a sophisticated, cultured politician" and has “qualities of a statesman." However, internal divisions in the Congress have pushed him to the margins. “There have been ED raids before on his institutions. But this time, getting linked to someone arrested under COFEPOSA complicates matters," Puranik said.

So, will this scuttle his chances of succeeding Siddaramaiah? Puranik responds: “I don’t think so. But he may not become CM either."

Puranik believes the final call lies with the Congress high command — Rahul Gandhi, Sonia Gandhi, and a few others. “Parameshwara may not be elevated to the CM post due to the power struggle between Siddaramaiah and Shivakumar. If a reshuffle happens in the coming months, he might be offered the Deputy CM role again. But even that could spark a contest — AICC chief Mallikarjun Kharge’s son, Priyank Kharge, is also in the reckoning."

Puranik recalled how Siddaramaiah defeated Parameshwara in Koratagere and argued that Shivakumar remains a strong contender. “If Shivakumar becomes CM, Parameshwara may have to settle for DCM. He is a dyed-in-the-wool Congressman — loyal and original, unlike Siddaramaiah, who has jumped parties before. So, Parameshwara, as a loyal Congressman, may quietly accept whatever the party offers," Puranik said.

The analyst added that he sees Karnataka witnessing a change in the Chief Minister’s post in the next few months.