Kannada actor Ranya Rao has confessed to using the illegal hawala channel for fund transfers to purchase gold, the Directorate of Revenue Intelligence (DRI) informed the court on Tuesday.

She was arrested on charges of gold smuggling and misusing her father (DGP) Ramachandra Rao's name to escape security checks by availing the protocol reserved for officials of the highest rank.

The DRI officials arrested Ranya Rao after seizing 14.8 kg of gold from her at the Bengaluru International Airport.

The agency seized Rs 2.06 crore worth of gold and ₹2.67 crore in cash from her upscale Lavelle Road flat, where she reportedly paid ₹4.5 lakh in rent.

Karnataka DGP for State Police Housing Corporation, Ramachandra Rao, responding to the development of the arrest of his step-daughter, Ranya Rao, had said that he was devastated and caught unaware by this development.

On March 15, the Karnataka government placed jailed actress Ranya Rao's father, DGP K. Ramachandra Rao, on compulsory leave with immediate effect and until further notice in connection with the gold smuggling case.

DGP Rao was serving as the Chairman and Managing Director of the Karnataka State Police Housing and Infrastructure Development Corporation Ltd.

Ranya Rao has been sent to jail in the gold smuggling case.

The Karnataka government had assigned senior IAS officer Gaurav Gupta, the Additional Chief Secretary, to start an investigation immediately against DGP Ramachandra Rao.

DGP Rao is expected to be asked to appear before Gupta for questioning at any time.

Besides, the Directorate of Revenue Intelligence (DRI), the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) are investigating the case.

Rao had alleged that the DRI officials repeatedly slapped and hit her during custody and demanded she sign statements, threatening they will "expose" her stepfather, DGP K Ramachandra Rao.

(with inputs from syndicated feed)