MUDA case: ED attaches 92 properties worth Rs 100 cr

ED mentioned the move comes in connection with the MUDA scam case matter related to Karnataka Chief Minister Siddaramaiah and others, having a cumulative attachment of Rs 400 crore so far.

Bengaluru: In a major development, the Enforcement Directorate (ED) has attached 92 properties worth an estimated Rs 100 crore in connection with the Mysuru Urban Development Authority (MUDA) site allotment case, where Chief Minister Siddaramaiah is one of the accused. With this, the total number of assets attached in the case rose to 252 with an approximate value of Rs 400 crore.

In a statement released on Tuesday, the ED said that the immovable properties were attached under the provisions of the Prevention of Money Laundering Act (PMLA).

"The attached properties are registered in the name of entities such as housing cooperative society and individuals who are front/dummy for influential persons, including MUDA officials," the ED alleged.

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

"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 investigation," the Central agency alleged.

ED claimed that 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 backdating 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," it alleged.

“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 is in continuation of 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 in progress."

Previously, ED had claimed that during its investigation it had found that Siddaramaiah, his wife B M Parvathi, brother-in-law B M Mallikarjun Swamy, J Devaraju, MUDA officials and others were involved in attempted money laundering.

"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. MUDA later acquired this land, and as compensation, allotted Parvathi 14 sites worth Rs 56 crore in the posh locality of Vijayanagar," the ED had alleged.

"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 claimed.