The Enforcement Directorate (ED) has attached assets worth ₹40 crore in connection to the ongoing Karnataka MUDA-linked money laundering investigation. This recent action brings the total value of attached assets in this case to an alarming ₹400 crore.
On October 4, the agency issued a provisional attachment order involving 34 immovable properties, including several sites affiliated with the Mysuru Urban Development Authority (MUDA). The market value of these assets reaches an estimated ₹40.08 crore, confirming the depth of the investigation.
This investigation stems from an FIR filed by the Karnataka Lokayuktha Police, triggering the ED’s involvement. The agency’s ongoing efforts have so far led to significant seizures and financial retractions.
In September, the ED arrested former MUDA Commissioner GT Dinesh Kumar, who currently remains in judicial custody. Evidence suggests he is intricately linked to the money laundering scheme.
The investigation revealed a complex web of financial transactions, with allegations of routing and layering of undue gratification received by Kumar for the illegal allotment of MUDA sites. This scheme reportedly involved using proceeds of crime to purchase properties named after relatives and associates of Kumar.
“Such proceeds of crime were used for purchasing immovable properties in the name of relatives and associates of GT Dinesh Kumar. Further investigation also found illegal allotment of 31 MUDA sites by Kumar,” the agency stated.
The ED alleges a pervasive nexus between MUDA officials and local real estate business figures, with indications of cash payments made in exchange for site allotments, compensation, and layout approvals. This accusation opens up more questions about the transparency and governance of land allotment processes within Karnataka.
The case extends beyond property dealings to involve allegations surrounding land allotment to Parvathi, the wife of Karnataka Chief Minister Siddaramaiah. This entanglement adds a layer of political complexity to an already serious investigation.
In a critical ruling, the Supreme Court upheld a decision by the Karnataka High Court in July 2024, which quashed ED proceedings against Parvathi in this matter. The court’s ruling highlighted the challenges the agency faces in substantiating its claims.
The Justice P.N. Desai Commission, appointed by the state government to investigate the allegations, has since exonerated both Siddaramaiah and his family from any wrongdoing. Additionally, the Lokayuktha Police confirmed no evidence implicating Siddaramaiah, Parvathi, and two others in any malfeasance.
As the ED’s investigation continues, the focus remains on restoring integrity within the MUDA and ensuring that all allegations are thoroughly examined. The public and political scrutiny remains heightened as the case develops, raising pressing questions about governance and accountability in Karnataka.
