Kannada actress Ranya Rao, who was arrested in a gold smuggling case, has confessed to using hawala channels for purchases, the directorate of revenue intelligence (DRI) told a special court on Tuesday, opposing her bail plea.
Rao, stepdaughter of IPS officer K Ramachandra Rao, was arrested at the Kempegowda International Airport in Bengaluru on March 3 after DRI officials found her in possession of 14.2 kg of gold bars worth ₹12.5 crore, upon her arrival from Dubai.
Meanwhile, the special court reserved its order on the bail plea filed by the actress until March 27, following a detailed hearing of arguments from both Rao’s counsel Kiran Jawali, who sought her release, and lawyer Madhu Rao, representing DRI, who opposed the plea claiming her direct role in the illicit transfer of funds.
“Money has been sent to Ranya Rao through hawala, she has confessed that,” Madhu Rao argued in the court.
In order to further probe financial irregularities related to the case, authorities have invoked Section 108 of the Customs Act, which mandates a judicial inquiry.
Ranya Rao’s bail plea in the gold smuggling case was rejected twice — first by a lower court and later by the special court for economic offences.
Besides Rao, her Telugu actor friend Tarun Konduru Raju is also an accused in the case, with federal revenue and intelligence agency claimed that the duo made 26 trips together between January and March this year alone. Officials suspect that overall Rao has made 56 trips to Dubai between 2023 and this year.
Besides DRI, the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) have also registered separate cases to focus on a larger international syndicate and possible role of government officials in facilitating the smuggling.
Investigators believe that Rao used the clout of her stepfather K Ramachandra Rao to avoid checks at the airport. Ramachandra Rao — who has been serving as director general of police (DGP) since October 2023 and is chairman and managing director of the Karnataka State Police Housing and Infrastructure Development Corporation Limited —has denied any role in the alleged gold smuggling.
The state government has tasked additional chief secretary Gaurav Gupta with investigating whether the IPS officer had any involvement in the case. When asked about the status of the inquiry, Karnataka home minister G Parameshwara told reporters: “We don’t discuss with him (Gupta) on a day-to-day basis regarding the probe. He was given a week’s time, and once the report is submitted, we will get to know.”