Several allegations of irregularities over site allotment under the 50:50 ratio scheme came into light under Kumar's tenure.
Published Sep 17, 2025 | 12:02 PM ⚊ Updated Sep 17, 2025 | 12:02 PM
Representational image. Credit: iStock
Synopsis: The ED arrested former MUDA commissioner GT Dinesh Kumar for money laundering and illegal site allotments under the MUDA scam. Following searches at his residences, evidence of bribes and fraudulent allotments using fake documents was uncovered. Kumar, arrested Tuesday night, faces a PMLA court hearing. The scam involved illegally allotted MUDA sites worth ₹300 crore.
The Enforcement Directorate (ED) arrested ex-MUDA commissioner GT Dinesh Kumar on charges of money laundering and illegal site allotment, on late Tuesday night.
The arrest came after ED conducted extensive searches at two of his residential premises in connection with the MUDA illegal sites allocation scam.
He is expected to be produced before a designated special Prevention of Money Laundering Act (PMLA) court in Bengaluru on Wednesday where ED will seek his custody.
Kumar took over as MUDA commissioner in 2022. When several allegations of irregularities over site allotment under the 50:50 ratio scheme came into light, the state abruptly transferred him, albeit without a post.
He was later appointed as registrar at Haveri University. This order was eventually revoked after mounting criticism against the state.
ED probe revealed a large-scale scam in the allotment of MUDA sites by flouting various statutes and government orders/guidelines and by other fraudulent means. The role of ex-MUDA commissioners, including Dinesh Kumar, has emerged as instrumental in the illegal allotment of compensation sites to ineligible entities/individuals.
The evidence concerning obtaining bribes for making illegal allotments in the form of cash, bank transfer, movable/immovable properties has been gathered during the investigation, ED said.
The modus operandi for making illegal allotment involved the identification of ineligible beneficiaries and making allotment using fake or incomplete documents, violating. In some cases, it also involved back-dating of allotment letters, the agency said.
The gratification received for making these illegal allotments was routed through a co-operative society and bank accounts of the relatives or associates of the officers, who played key roles 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.
ED said the attachment of the 92 MUDA sites was in continuation of the previous attachment of 160 MUDA sites, having a market value of approximately ₹300 crore.
“The cumulative market value of the proceeds of crime provisionally attached so far is approximately ₹400 crore,” the ED said.
The ED attached 92 MUDA sites worth ₹100 crore under PMLA on June 10. The attached properties were registered in the names of entities such as housing cooperative societies and front or dummies of influential people, including MUDA officials, ED said in their statement.
The ED initiated a probe based on an FIR registered by the Lokayuktha Police, Mysuru, under various sections of the IPC, 1860, and the Prevention of Corruption Act, 1988, against Chief Minister Siddaramaiah and others.
The FIR had said in February that the allegations against Siddaramaiah, his wife Parvathi M, and two others were not substantiated. However, a special court on 15 April allowed the continuation of the ED probe against Siddaramaiah.
(With inputs from Anisha Reddy. Edited by Amit Vasudev)
