The Enforcement Directorate (ED) announced on Monday the attachment of fresh assets valued at ₹40 crore in connection with an ongoing investigation into money laundering linked to the Karnataka Mysuru Urban Development Authority (MUDA). This provisional attachment concerns 34 immovable properties, comprising several MUDA sites, and was executed under the Prevention of Money Laundering Act (PMLA) on October 4.
The total market value of these attached assets stands at ₹40.08 crore. This significant move follows a probe initiated from an FIR filed by the Karnataka Lokayuktha Police pertaining to alleged corrupt practices within MUDA.
With the latest action, the ED has now attached properties worth a staggering ₹400 crore throughout its ongoing investigation into this money laundering case. This total reflects a concerted effort from the agency to curb financial misappropriation linked to government officials.
In a previous development, the ED had arrested former MUDA Commissioner GT Dinesh Kumar in September. He currently remains in judicial custody as the investigation unfolds, revealing crucial details about the financial dealings that took place.
The agency’s inquiries have suggested numerous instances of “routing and layering of undue gratification” purportedly received by Kumar. The ED claims that these proceeds of crime were strategically used to acquire immovable properties registered under the names of Kumar’s relatives and associates.
“Such proceeds of crime were used for purchasing immovable properties in the name of relatives and associates of GT Dinesh Kumar. Further investigation also found illegal allotment of 31 MUDA sites by Kumar,” the agency disclosed in an official statement.
Additionally, the ED alleges a profound “nexus” between MUDA officials and local real estate businessmen. Evidence indicates that cash transactions occurred for site allotments, compensations, and layout approvals, thereby facilitating a corruption-riddled environment within MUDA.
The case also encompasses claims of irregular land allotment to Parvathi, the wife of Karnataka Chief Minister Siddaramaiah. However, the Supreme Court recently upheld a ruling from the Karnataka High Court that dismissed the ED’s proceedings against her, indicating a lack of sufficient grounds to pursue the case.
Meanwhile, a commission led by Justice P.N. Desai of the Karnataka government has exonerated both Siddaramaiah and his family from any wrongdoing. The Lokayuktha Police also provided a clean chit to Siddaramaiah, Parvathi, and two others, citing an absence of tangible evidence to support the allegations made against them.
The investigations by the ED and the Lokayuktha Police continue to draw significant attention, highlighting the interplay of governance and regulatory oversight in Karnataka’s urban development sectors.
