MUDA scam: ED attaches 92 more properties worth Rs 100 crore

The Enforcement Directorate (ED) has provisionally attached 92 properties with a market value of Rs 100 crore in connection with an alleged large-scale “scam” in the allocation of Mysore Urban Development Authority (MUDA) sites, allegedly involving Karnataka Chief Minister Siddaramaiah.

The central agency, which has attached properties worth Rs 400 crore so far, has alleged that the attached properties are registered in the names of entities such as housing cooperative societies and individuals who are “front/dummy” for influential persons, including MUDA officials.

“The 92 MUDA sites attached by the ED are in continuation to the previous attachment of 160 MUDA sites having a market value of approximately Rs 300 crore,” the ED said.

The cumulative market value of the proceeds of the crime provisionally attached so far is approximately Rs 400 crore, it said.

Also read: Karnataka HC issues notice to CM, wife on plea for CBI probe in MUDA case

ED probe shows “large-scale scam”

A statement from the agency said the ED initiated an investigation on the basis of an FIR registered by the Lokayukta Police Mysore under various sections of IPC, 1860 and Prevention of Corruption Act, 1988 against Siddaramaiah and others. It added that the attachment was done on Monday (June 9).

Notably, even though the ED’s investigation is based on Karnataka Lokayukta’s FIR, the latter closed the case in February saying the allegations against Siddaramaiah, his wife Parvathi M, and two others could not be substantiated due to insufficient evidence.

The ED probe showed “large-scale scam” in the allotment of MUDA sites by flouting various statutes and government orders/guidelines, and by other fraudulent means, it said.

The role of former MUDA commissioners, including GT Dinesh Kumar, has emerged as instrumental in the illegal allotment of compensation sites to ineligible entities and individuals, the ED said.

Also read: No evidence against Siddaramaiah, wife in MUDA case: Lokayukta police

Evidence of bribe transactions

The central probe agency has gathered evidence showing bribe transactions for making illegal allotments in the form of cash, bank transfer, movable and immovable properties, it said.

The modus operandi revealed by the agency showed that illegal allotments were made to ineligible beneficiaries using fake and incomplete documents, in direct violation of government orders, and also involved the 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 relatives/associates of the officers playing key role in the allotment process. The gratification thus received was further used to purchase some of these illegally allotted MUDA sites in the name of relatives of MUDA officers,” the ED said.

(With agency inputs)