ED said that the investigation, based on an FIR at Mysuru's Lokayuktha Police Station, reveals financial misconduct, including tampered records, political influence, and forgeries used to facilitate illegal land transactions
Published Jan 30, 2025 | 7:29 PM ⚊ Updated Jan 30, 2025 | 7:32 PM
ED names CM Siddaramaiah, family in ₹56 crore land allotment scam
The Enforcement Directorate (ED) has named Karnataka Chief Minister Siddaramaiah, his wife BM Parvathi, and several key officials of the Mysore Urban Development Authority (MUDA) in an investigation into a massive land allotment scandal involving nearly ₹56 crore.
The probe has uncovered widespread irregularities, including the illegal de-notification of government-acquired land and fraudulent land conversions.
The investigation, which stems from an FIR registered at the Lokayuktha Police Station in Mysuru, points to significant financial misconduct, with allegations of tampered records, political influence, and forgeries used to facilitate illegal land deals.
One of the primary aspects of the scam involves the de-notification of land acquired by MUDA for public development, a process that occurred without due diligence or expert review.
Though Siddaramaiah was serving as the Deputy Chief Minister and a board member of MUDA at the time, he was absent during the meeting where the controversial de-notification was discussed.
Additionally, officials from the Karnataka Revenue Department are accused of fabricating spot inspection reports, misrepresenting the status of unauthorised constructions on the land.
Official records and satellite images contradict the claims, raising suspicions of collusion between MUDA officers and real estate businessmen.
A particularly troubling finding involves an indemnity bond linked to BM Mallikarjuna Swamy, a key figure in the scandal, which was allegedly forged.
One of the most controversial aspects of the investigation centers around the illegal allotment of 14 prime-location sites to BM Parvathi, Siddaramaiah’s wife.
These sites were allocated in direct violation of MUDA’s statutory guidelines. The illegal allotments were traced back to political influence and were returned to MUDA after the ED launched its investigation.
The ED’s report suggests that the process, from de-notification to site allotment, was strategically orchestrated to acquire valuable land within a MUDA-developed layout.
The ED’s investigation into the financial aspects of the scam has revealed that the 14 sites, worth approximately ₹56 crore, were used as proceeds of crime.
The properties were initially obtained through illegal land deals and were subsequently laundered through multiple transactions, including gift deeds and settlement agreements. These illegal sites were then sold, with their origin hidden from legitimate buyers.
The ED has found evidence that these criminal proceeds were further layered through various real estate dealings, including General Power of Attorney (GPA) documents, to disguise their illegal origin.
According to the ED’s report, these sites were sold at inflated prices, generating unaccounted cash in the process.
In October 2024, the ED conducted searches at 15 premises related to the case. The seized evidence reveals a deep-rooted nexus between MUDA officers and influential real estate players.
The illegal allotment process is described as a well-organised conspiracy, with real estate businessmen and MUDA officials working in tandem to secure prime land for ineligible individuals.
The proceeds from these transactions were systematically funneled and disguised through a complex network of financial maneuvers.
The investigation has been registered under the Prevention of Money Laundering Act (PMLA), with the ED focusing on the illegal financial transactions tied to the land scam.
The ED’s probe highlights the complex layering and concealment of criminal proceeds through fraudulent real estate deals, with the involvement of several high-profile individuals and MUDA officials.
Among those named in the case are former MUDA commissioner GT Dinesh Kumar, real estate businessmen such as N Manjunath and R Jayaramu, as well as other influential figures connected to the scam.
The ED’s investigation under PMLA aims to identify and secure the illicit assets involved in the scandal to prevent them from being further laundered.
The evidence gathered in the ED’s investigation has been shared with the Lokayuktha Police, which is concurrently investigating the original scheduled offences under the Prevention of Corruption Act.
The ED’s case is part of a larger ongoing probe into the financial misconduct that has caused significant losses to the state exchequer. The investigation continues as more evidence is expected to emerge.
The ED’s ongoing investigation is focused on securing the proceeds of crime and preventing further illegal transactions involving the 14 sites.
The findings of the ED investigation, particularly the laundering of criminal proceeds through real estate, may have broader implications for future governance and land management practices in the state.
(Edited by Ananya Rao with inputs from Nolan Patrick Pinto)
