Chikkamagaluru: The Karnataka Lokayukta police have registered a First Information Report (FIR) against Sringeri Congress MLA TD Rajegowda and his family members under provisions of the Prevention of Corruption Act, following directions from the Special Court of People’s Representatives. The case, stemming from allegations of disproportionate assets and misuse of power, has put the legislator under the scanner once again.
The FIR was lodged based on a private complaint filed by Koppa resident Dinesh HK, who alleged that Rajegowda had committed acts of corruption, fraud, and misuse of official power, thereby causing loss to the government and violating income tax laws.
In his petition, Dinesh urged the court to order a thorough probe into Rajegowda’s financial dealings. After hearing the matter, the Special Court on September 16 directed the Lokayukta police to register a case and conduct a detailed investigation.
According to the complaint, Rajegowda’s family members hold assets far beyond their declared sources of income. The complainant particularly highlighted financial dealings in the partnership firm Ms. Shabana Ramzan as evidence.
The firm, established in 1984 by businessman Haji Aurangzeb and associates, underwent significant changes in its ownership over the years. By 1992, prominent industrialists SV Gangaiah Hegde, VG Siddhartha of Café Coffee Day fame, and his wife Malavika Hegde became partners. The firm subsequently acquired 266 acres of coffee plantation, mortgaging the estate to banks for large-scale loans.
Following the deaths of Siddhartha and Gangaiah Hegde in 2019, Rajegowda’s wife D.K. Pushpa was brought in as a 48% partner. Within months, their son Rajdev T.R. was also added as a partner, raising questions about the family’s financial involvement and stakes in the company.
Discrepancy between loans repaid and income declared
The complainant has alleged that the Rajegowda family cleared massive loans despite declaring modest annual incomes. The documents submitted claim that the firm paid ₹55.75 crore to Standard Chartered Bank, ₹66 crore to Bank of Baroda, and ₹81.95 lakh to Karnataka Bank.
However, in his Lokayukta affidavit, Rajegowda had reportedly declared an annual income of only Rs 40 lakh, raising doubts about how such large repayments were managed. The complaint asserts that this discrepancy points to undisclosed income and benami transactions.
This is not the first time Rajegowda has faced scrutiny. The Lokayukta Superintendent of Police had earlier conducted a preliminary inquiry in 2023 into similar allegations but concluded that the charges were “baseless.” Dissatisfied, complainant Dinesh challenged the findings before the Special Court of People’s Representatives, arguing that the investigation was incomplete and failed to account for key financial documents.
Accepting this argument, the court ordered the registration of a fresh FIR and instructed the Lokayukta to carry out a comprehensive probe into the allegations of disproportionate assets and misuse of power.
Lokayukta’s stand
Confirming the development, Lokayukta officials stated that the FIR has been registered, and a full-fledged investigation is now underway. A senior officer said, “We have been directed by the Special Court to investigate the allegations against MLA T.D. Rajegowda and his family members. Relevant documents and financial transactions will be examined in detail.”
The case has been booked under Sections 13(1)(e) and 13(2) of the Prevention of Corruption Act, which deal with possession of assets disproportionate to known sources of income.
The FIR has triggered political reactions across the Malnad region, where Rajegowda is a prominent Congress leader. Opposition leaders have seized on the development, accusing the ruling party of shielding corrupt legislators. The BJP alleged that the Congress came to power through false promise of eradicating corruption indulged in this and betrayed people. It said congress means corruption.
Rajegowda, however, has not yet issued a formal statement. Party insiders suggest he may term the complaint politically motivated, pointing to previous clean chits given by the Lokayukta police.
