MUDA case: ED attaches 92 properties worth Rs 100cr; probe reveals 'large-scale' site allotment scam

NEW DELHI: The Enforcement Directorate has attached 92 Mysore Urban Development Authority (Muda) sites worth Rs 100 crore in a money laundering case linked to Karnataka chief minister Siddaramaiah and others. This latest action brings the total value of attached properties to Rs 400 crore in the ongoing investigation. The probe has uncovered a sophisticated scheme involving illegal site allotments through fraudulent documentation and bribe routing via cooperative societies. According to the ED, "The attached properties are registered in the name of entity such as housing cooperative society and individuals who are front/dummy for influential persons including MUDA officials.""ED investigation revealed a large scale scam in allotment of MUDA sites by flouting various statutes and government orders/ guidelines and by other fraudulent means.

The role of ex-MUDA commissioners including GT Dinesh Kumar has emerged as instrumental in illegal allotment of compensation sites to ineligible entities/individuals. The evidences with respect to obtaining bribe for making illegal allotments in the form of cash, bank transfer, movable/immovable properties have been gathered during the course of the investigation," the statement added.According to the probe agency, The scam's modus operandi involved identifying ineligible beneficiaries and making allocations using fake or incomplete documentation, directly violating government orders.

In some instances, allotment letters were backdated. The ED stated, "The gratification received for making these illegal allotments was routed through a co-operative society and bank accounts of the relatives/associates of the officers playing key role in the allotment process."The ED added that "The gratification thus received was further used to purchase some of these illegally allotted MUDA sites in the name of relatives of MUDA officers."The investigation gained momentum after the governor, Thaawar Chand Gehlot, authorized an investigation into Siddaramaiah's involvement. A special court subsequently ordered an FIR against the chief minister and three others on September 27, following a petition by social activist Snehamayi Krishna. The Karnataka High Court has upheld the governor's decision. The case encompasses violations under multiple laws, including the IPC, Prevention of Corruption Act, Prohibition of Benami Property Transactions Act, and Karnataka Land Grabbing Prohibition Act.