MUDA scam: ED seizes 34 immovable properties worth Rs 40.08 crore

Bengaluru, Oct 6 (IANS) The Enforcement Directorate (ED), Bengaluru Zonal Office, probing the sensational Mysuru Urban Development Authority (MUDA) scam case, has attached immovable properties worth Rs 40.08 crore, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the agency said on Monday.

Karnataka Chief Minister Siddaramaiah and his wife are named as accused number one and two in the case.

In a statement, the ED stated, "Directorate of Enforcement (ED), Bengaluru Zonal Office has provisionally attached 34 immovable properties, including MUDA sites having a market value of Rs 40.08 crore on October 4 under the provisions of Prevention of Money Laundering Act (PMLA), 2002 in connection with MUDA Scam case."

The agency initiated an investigation on the basis of an FIR registered by Lokayukta Police, Mysore, in the case of large-scale scam in the allotment of site by Mysuru Urban Development Authority (MUDA).

ED investigation revealed the routing and layering of undue gratification obtained by G.T. Dinesh Kumar, former Commissioner of MUDA. Such proceeds of crime were used for purchasing immovable properties in the name of relative/associates of Dinesh Kumar. Further investigation also revealed illegal allotment of 31 MUDA sites by Dinesh Kumar.

Searches in the case were undertaken by ED on October 10, 2024 and October 28, 2024. The searches revealed that the sites were allotted in gross violation of the letter dated March 14, 2023, Government Order dated October 27, 2023, Karnataka Urban Development Authorities (Allotment of Sites in lieu of compensation for the land Acquired) Rules, 2009 as amended in 2015 and Karnataka Urban Development Authority (Incentive Scheme for voluntary Surrender of Land) Rules, 1991.

Further, the search action also revealed a deep nexus between MUDA Officers/officials and real estate businessmen. Evidence also revealed payment of cash for the allotment of sites as compensation and approval of layouts.

Earlier, in the case, the ED had provisionally attached a total of 252 illegally allotted MUDA sites. Further, G. T. Dinesh Kumar, who made large-scale illegal allotment of MUDA sites, was arrested under the provisions of PMLA, 2002, on September 16, 2025. Presently, GT Dinesh Kumar has been remanded to Judicial Custody.

Proceeds of Crime, having a market value of Rs 440 crore (approx.), have been attached so far in the case under the provisions of PMLA, 2002.

Further investigation is in progress, the official statement said.

--IANS

mka/uk