ED Seizes 'Benami And Dummy' Properties Worth Rs 300 Crore In MUDA Land Case Involving Karnataka CM Siddaramaiah

The Enforcement Directorate (ED) confirmed on Friday (17 January) that it has seized over 140 units of non-movable properties valued approximately at Rs 300 crore in a money laundering case connected to the Mysuru Urban Development authority (MUDA).

The attachment is associated with a financial fraud investigation into purported anomalies in land distribution by the MUDA. This case implicates Karnataka Chief Minister Siddaramaiah among others.

The federal agency declared in a statement that the attached properties are registered under the names of numerous individuals who operate as real estate businessmen and agents, NDTV reported.

Accusations have been made that Congress leader Siddaramaiah leveraged his political power to secure compensation for 14 sites under the name of his wife, B M Parvathi. This was in exchange for 3 acres and 16 guntas of land that was seized by MUDA.

"The land was originally acquired by MUDA for Rs 3,24,700. The compensation in the form of 14 sites at posh locality is worth Rs 56 crore," the agency said.

Siddaramaiah, interrogated by the Karnataka Lokayukta regarding this matter, has consistently refuted any misconduct on his part or his family's. He asserts that the opposition is intimidated by him and that the accusations are driven by political motives.

The agency has highlighted the pivotal role played by former MUDA commissioner, D B Natesh, in the unlawful allocation of compensation sites to Parvathi.

The investigation into the case revealed that the MUDA had "illegally" allocated a significant number of sites beyond the 14 assigned to Parvathi. These sites were given as compensation to real estate businessmen who subsequently sold them for a "huge" profit, generating a large sum of "unaccounted" cash.

The earnings thus produced have been "laundered" and portrayed as originating from lawful sources, as alleged. The allocation happened in the name of "benami and dummy" persons of influential names and real estate businessmen, as per the agency.

The allegations suggest that condemning proof related to the illicit payment to the former MUDA chairman and MUDA Commissioner was discovered during the investigations. The evidence consisted of non-movable assets, MUDA sites, and cash among other things.

The agency has reportedly discovered that funds were channeled via a cooperative society to acquire property and luxury vehicles among other things, all under the names of relatives of G T Dinesh Kumar. Kumar was previously the commissioner of MUDA, as per the allegations.