MUDA Scam: ED Attaches 92 Immovable Properties Worth ₹100 Crore In Case Linked To Karnataka CM Siddaramaiah

(MENAFN- Live Mint) The Enforcement Directorate's Bangalore unit has provisionally attached 92 immovable properties (MUDA sites) worth around ₹100 crore on June 9, the agency informed in a post on social media platform X (formerly Twitter).

These sites have been attached under provisions of the Prevention of Money Laundering Act (PMLA, 2002), in connection with MUDA Scam case matter related to Karnataka Chief Minister Siddaramaiah and others. The MUDA scam case has seen cumulative attachment of ₹400 crore so far, it added.

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As per the release, the attached properties are registered in the name of entities such as housing cooperative societies and individuals who are fronts or dummies for influential persons, including MUDA officials.

The Enforcement Directorate (ED) initiated an investigation based on an FIR registered by the Lokayuktha Police, Mysore, under various sections of the IPC, 1860 and the Prevention of Corruption Act, 1988, against Siddaramaiah and others, who is the incumbent Chief Minister of Karnataka.

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 the illegal allotment of compensation sites to ineligible entities/individuals.

The evidence with respect to obtaining bribes for making illegal allotments in the form of cash, bank transfer, movable/ immovable properties has been gathered during the course of the investigation, as per the release.

The modus operandi for making illegal allotment involved identification of ineligible beneficiaries and making allotment using fake documents/incomplete documents in direct violation of government orders and also back dating of allotment letters in some cases.

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 a key role in the allotment process.

The gratification thus received was further used to purchase some of these illegally allotted MUDA sites in the name of relatives of MUDA officers.

It is pertinent to mention here that the attachment of these 92 MUDA sites are in continuation to the previous attachment of 160 MUDA sites having a market value of approximately Rs. 300 Crore.

The cumulative market value of the Proceeds of Crime provisionally attached so far is approximately Rs. 400 Crore.

Further investigation is under progress.

(With inputs from ANI)

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