ED attaches 92 MUDA properties worth Rs 100 crore in Karnataka amid corruption probe

The Enforcement Directorate’s provisional attachment of MUDA sites follows an earlier seizure of Rs 300 crore in properties

Bengaluru: The Enforcement Directorate (ED) has provisionally attached 92 immovable properties with a collective market value of around Rs 100 crore in connection with the Mysuru Urban Development Authority (MUDA) case. This action is part of an ongoing investigation under the Prevention of Money Laundering Act (PMLA), 2002, which involves Karnataka Chief Minister Siddaramaiah as the prime accused.

According to the ED’s official statement, this move follows an earlier attachment of 160 MUDA sites valued at approximately Rs 300 crore. In total, the ED has provisionally attached properties worth about Rs 400 crore as proceeds of crime.

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The attached properties are registered under various entities, such as a housing cooperative society, and in the names of individuals who acted as fronts for influential persons, including MUDA officials. The investigation was initiated following an FIR registered by the Lokayuktha Police in Mysuru, which included charges under various sections of the Indian Penal Code, the Prevention of Corruption Act, 1988, and other statutes.

Evidence gathered during the investigation reveals a large-scale scam involving the illegal allotment of MUDA sites. The scam reportedly involved flouting multiple statutes, government orders, and guidelines. The ED’s findings indicate that some ex-MUDA commissioners, notably former commissioner G.T. Dinesh Kumar, played a pivotal role in unlawfully allotting compensation sites to ineligible beneficiaries.

The fraudulent process involved the use of fake or incomplete documents along with the backdating of allotment letters. In return for making these illegal allotments, bribes were obtained through cash payments, bank transfers, and even movable or immovable properties. These funds were then funneled through a cooperative society and bank accounts linked to relatives or associates of the involved MUDA officials, further used to purchase illegally allotted MUDA sites.
The investigation is still ongoing, and more details are expected to emerge as the case unfolds.