MUDA case: CM Siddaramaiah attempted money laundering, alleges ED

Bengaluru: The Enforcement Directorate (ED) has alleged that Chief Minister Siddaramaiah and others were involved in attempted money laundering in the MUDA site allotment case.

The ED made the claim in its provisional attachment order dated January 17 following an investigation under the Prevention of Money Laundering Act, 2002. A copy of the order signed by Brij Shankar, Deputy Director, ED (Bengaluru), has been reviewed by DH.

Siddaramaiah's wife B M Parvathi, brother-in-law B M Mallikarjun Swamy, J Devaraju, MUDA officials and others were also involved in attempted money laundering, according to the ED.

Devaraju owned three acres and 16 guntas of land in survey number 464 at Kesare village, Mysuru district. He sold this land — "disguised as farmland" — to Mallikarjun in 2004. Mallikarjun gifted this to his sister Paravathi in 2010. The Mysuru Urban Development Authority (MUDA) later acquired this land, and as compensation, allotted Parvathi 14 sites worth Rs 56 crore in the posh locality of Vijayanagar, the ED stated.

"The land was originally acquired by MUDA for Rs 3.24 lakh. The same was illegally de-notified based on incorrect facts and under influence. Subsequently, the land was purchased by Mallikarjuna Swamy as agricultural land despite the fact (that) development has already been undertaken by MUDA and sites have been allotted. However, no objection or claim of compensation was claimed," the ED alleged.

The central agency claimed that the land converted into residential land was based on incorrect spot inspection reports and that MUDA did not raise any objections at the time.

"Illegal compensation in the form of sites at a posh locality worth Rs 56 crore was obtained through political influence. These illegally obtained sites were projected as compensation received from MUDA. The entire process was undertaken under the influence in collusion with officers of MUDA, especially D B Natesh, who was the then commissioner,” the ED stated.

As the ED investigations began, Parvathi returned the sites to MUDA on October 1, 2024.

"Though the sites have been returned, it is evident from the investigation (that) there was an attempt at money laundering as defined in Section 3 of PMLA, 2OO2, by the accused in the case i.e. Siddaramaiah, Parvathi, Mallikarjuna Swamy, Devaraju and other unknown persons/entities which included officers of MUDA, real estate businessman/influential individuals," the ED alleged.

It also claimed that S G Dinesh Kumar, Siddaramaiah's personal assistant, wielded "undue influence in the office of MUDA, forged signatures and influenced the process of allotment of sites to Parvathi".

'Deep-rooted nexus'

The ED alleged a "deep-rooted nexus" between MUDA officials and real estate businessmen and influential persons and that a large number of illegal allotments were made by MUDA officials against cash, immovable properties, vehicles etc.

Apart from Parvathi, the central agency 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 ie 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.