MUDA scam: ED attaches Rs 300 crore assets linked to CM Siddaramaiah
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Bengaluru: In a significant development for Karnataka Chief Minister Siddaramaiah, the Enforcement Directorate (ED) has provisionally attached 142 immovable properties, valued at approximately Rs 300 crore, under the Prevention of Money Laundering Act (PMLA) in connection with the Mysuru Urban Development Authority (MUDA) scam.
Siddaramaiah has been named as the first accused in the case, with his wife B.M. Parvathi listed as the second accused. The investigation is also focused on others who allegedly facilitated illegal allotments through the MUDA. According to the ED, former MUDA commissioner D.B. Natesh played a key role in the illegal allotment of compensation sites to Parvathi.
The ED's investigation has uncovered that, in addition to the 14 sites allotted to Parvathi, numerous other sites were illegally allocated by MUDA as compensation. These sites were then sold at significant profits by real estate businessmen, generating large amounts of unaccounted cash. Petitioner Snehamayi Krishna has alleged that the illegal allotments could amount to thousands of crores.
The ED also reported that the proceeds from these illegal transactions were laundered and disguised as legitimate earnings. During their searches, investigators found that several sites were allotted to "Benami" or dummy individuals, connected to influential persons and real estate businessmen. Incriminating evidence, including payments of illegal gratification in the form of immovable property, MUDA sites, and cash, was recovered.
The central agency stated that these illegal gains were subsequently laundered and made to appear as legitimate income. The properties now attached by the ED are registered in the names of various individuals involved in real estate business and acting as agents.
The ED's investigation was initiated based on an FIR filed by the Lokayuktha Police Mysuru, which included various sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act, 1988. It is alleged that Siddaramaiah used his political influence to secure compensation in the form of 14 sites for his wife, B.M. Parvathi, in exchange for 3 acres and 16 guntas of land acquired by MUDA. Originally acquired by MUDA for Rs. 3.24 lakh, the 14 sites are now valued at approximately Rs 56 crores in the upscale Vijayanagar locality of Mysuru.
Further investigation has revealed that money was funneled through a cooperative society for purchasing luxury properties and vehicles in the name of relatives of G.T. Dinesh Kumar, the former MUDA commissioner.
The investigation is ongoing. Siddaramaiah has firmly denied any involvement in the illegal allotments and stated that his wife returned the 14 sites to MUDA. Meanwhile, the Karnataka High Court’s Dharwad Bench adjourned the hearing on a plea seeking a Central Bureau of Investigation (CBI) probe into the case. The next hearing is scheduled for January 27. The court has also instructed the Lokayukta Additional Director General of Police (ADGP) to submit a report one day before the hearing.
Siddaramaiah is currently under investigation by both the Lokayukta and the Enforcement Directorate. He has filed a petition seeking the quashing of proceedings against him in the MUDA case. He faces multiple charges under various sections of the IPC, the Prevention of Corruption Act, the Benami Transactions (Prohibition) Act, and the Karnataka Land Grabbing Prohibition Act.
With IANS inputs