TDR scam now under ED lens

The transferable development rights (TDR) scam has now attracted the attention of the Enforcement Directorate (ED). Having closely followed the developments of the case in the last two months, ED officials are examining the facts of the case. Sources in ED told DH that the agency might also probe the scam worth hundreds of crores.

"We have examined the basic details of the case and are waiting for some progress in the investigation carried out by the Anti-Corruption Bureau (ACB). As soon as that stage is reached, ED will take up the case," an official, under the condition of anonymity, said.

While there were initial indications that ED might probe the transactions at the Sri Banashankari Mahila Co-operative Bank — which was searched by ACB officials in May — official sources said the ED could probe the entire case. "We can examine the whole case in total, apart from investigating the alleged economic offences committed at the co-operative bank," sources added.

The case attracted the ED's attention due to the high-value transactions carried out using fake accounts, which was unearthed by the ACB. During the searches carried out at the bank, ACB had found 174 bank accounts which were used to clandestinely deposit cheques issued after the sale of development rights certificates (DRCs) and to withdraw cash from the bank.

While the scam had occurred before the TDR section of BBMP was shifted to BDA in 2017, ACB had got wind of the case in the second half of 2018. However, an FIR filed with the ACB in connection with the scam, which named government officials and private individuals in April, had blown the lid off the scam.

ACB now suspects that more engineers, revenue department officials and members of the real estate industry — backed by politicians — were part of the elaborate scam that caused significant losses to the state exchequer.