ED arrests ex-MUDA commissioner Dinesh Kumar in money laundering suspicion

ED initiated the investigation on an FIR registered by the Lokayukta Police in Mysuru last year under various sections of IPC, 1860 and Prevention of Corruption Act, 1988, against Siddaramaiah, his wife Parvathi and others.

Bengaluru: The Enforcement Directorate (ED) has arrested former Mysuru Urban Development Authority (MUDA) commissioner GT Dinesh Kumar on charges of money laundering, sources said on Wednesday.

The arrest followed searches at two residential properties in Bengaluru belonging to Kumar and his questioning by ED officials. The searches were held under provisions of the PMLA, 2002, in connection with the MUDA illegal sites allocation scam.

ED sources alleged that Kumar, during his tenure as MUDA commissioner (2022-2024), indulged in large-scale illegal allotment of MUDA sites in lieu of gratification and pecuniary benefits. "The investigation till now has revealed his active involvement in money laundering activities. Further probe is in progress," sources said.

In June 2025, ED had attached 92 properties worth an estimated Rs 100 crore in connection with the MUDA scam. At the time, ED said its 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 investigation," the Central agency had alleged.

ED also alleged that the sale profits were routed to Kumar through "loans/advances to his relatives and associates". "Some of the sites were transferred to relatives/associates of GT Dinesh Kumar and other influential persons," the agency alleged. 

ED sources said that Kumar’s arrest wasn’t directly linked to the alleged MUDA scam involving Chief Minister Siddaramaiah and his wife, BM Parvathi, but was focused on the overall illegal allotments. 

The ED, in its provisional attachment order dated January 17, 2025, had alleged the presence of a "deep-rooted nexus" between MUDA officers and real estate businessmen and influential persons and that a large number of illegal allotments were made by MUDA officers against cash, immovable properties, vehicles, etc.

Apart from Parvathi, the ED named Abdul Wahid (41 sites), M Ravikumar and others (31), Cathedral Parish Society (40) and members of Chamundeshwari Nagara Sarvodya Sanga (48), who "illegally" received the major allotment from 1,095 sites.

"The modus operandi was to make illegal allotments to ineligible persons who were front or dummy. These sites were subsequently projected as untainted, ie, having been obtained as compensation for land acquired by MUDA.

"Further, these illegally allotted sites are being sold to obfuscate their true origin, that is proceeds of crime, and to frustrate proceedings under PMLA, 2002. The resultant sale consideration obtained is being projected as untainted income from real estate business,” the ED alleged.