The Enforcement Directorate (ED) has taken decisive action in connection with the Karnataka MUDA-linked money laundering investigation, attaching assets worth ₹40 crore. This significant development comes after a provisional attachment order was issued on October 4, covering 34 immovable properties, including several linked to the Mysuru Urban Development Authority (MUDA).
With the newly attached assets, the cumulative value of properties linked to this investigation now totals an impressive ₹400 crore. The agency revealed the market value of these properties in a statement released to the media.
The ongoing money laundering probe traces back to an FIR filed by the Karnataka Lokayuktha Police, which uncovered alleged corrupt practices involving real estate and governmental procedures. These latest findings are crucial as they reflect the extensive nature of the financial misconduct emanating from MUDA.
The ED’s investigation has already led to the arrest of former MUDA Commissioner GT Dinesh Kumar in September, who now remains in judicial custody. The agency asserts that it has uncovered instances of “undue gratification” received by Kumar, indicating a pattern of deceit and illegal financial operations.
“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 claimed.
The agency has also highlighted a “deep nexus” between MUDA officials and real estate businessmen. Evidence reportedly shows the involvement of cash payments for site allotments, compensation, and layout approvals, pointing to a systemic issue of corruption within MUDA.
The investigation has even implicated higher echelons, including issues related to the allotment of land to Parvathi, wife of Karnataka Chief Minister Siddaramaiah. However, in a significant relief for Siddaramaiah, the Supreme Court in July 2024 upheld a Karnataka High Court order that quashed ED proceedings against her.
The Justice P.N. Desai Commission, appointed by the Karnataka state government to probe these allegations, has exonerated Siddaramaiah and his family. In an official statement, the Lokayuktha Police also cleared Siddaramaiah, Parvathi, and two others from wrongdoing, citing a lack of evidence.
This ongoing investigation into the Karnataka MUDA money laundering case highlights the complexities and complications of illegal financial dealings within urban administrative frameworks. As the ED continues to uncover more evidence, further developments in this case are likely, potentially implicating even more individuals within governmental and real estate sectors.