ED uncovers ‘well-oiled machine’ after searching excise officials, others

2 min readBengaluruJun 26, 2026 01:52 PM IST

The ED also claimed that excise officers illegally obtained liquor licenses in the names of their family members. (Image generated using AI)

The Enforcement Directorate (ED) Thursday alleged that Karnataka excise department officials were running a syndicate to collect bribes.

The ED statement came within hours of the department searching 14 premises across the state linked to senior excise officials. The searches were conducted based on a First Information Report (FIR) registered at the Karnataka Lokayukta alleging illegal gratification for issuing excise licences.

The searches covered properties linked to excise officials Jagdish Nayak, K M Thammanna, and Y D Manjunath and their families and associates. Manjunath is the son of former Ballari MP Y Devendrappa and brother-in-law of Karnataka Public Works Department Minister Satish Jarkiholi.

Releasing a statement after the searches, the ED said, “The state excise department is running like an organised syndicate network of public officials, their associates and private individuals for the collection of bribes. The network works like a well-oiled machine, which runs on corruption money generated by various excise shops, which pay a fixed monthly bribe to the field officers. The money is also generated during the renewal/shifting of licences and also during the issuing of fresh licenses. The bribe collected is centrally pooled and distributed with the help of intermediaries and associates, who maintain an account of money received and paid in an unofficial cash book.”

The ED also claimed that excise officers illegally obtained liquor licenses in the names of their family members. “The income generated from these businesses is projected as generated from legal businesses, thus integrating the Proceeds of Crime in the regular economy,” the ED added.

The Enforcement Department seized digital devices, bribe distribution cash books, property documents, besides cash amounting to Rs 5.5 crore, gold jewellery valued at approximately Rs 7.8 crore, and foreign currency worth Rs 3.3 lakh from the premises searched recently.