Bengaluru, Jan 22 (NationPress) The Enforcement Directorate (ED) from the Bengaluru Zonal Office has provisionally seized 10 immovable properties, which consist of six Mysuru Urban Development Authority (MUDA) sites that were illegally allotted, alongside three other immovable assets and a commercial building, all valued at Rs 20.85 crore as of January 21, under the Prevention of Money Laundering Act (PMLA), 2002. This action is part of the ongoing MUDA scam investigation involving Chief Minister Siddaramaiah and others.

The total proceeds of crime attached to the case have reached a staggering Rs 460 crore, according to an official statement issued by the ED on Thursday.

The ED's investigation commenced following an FIR lodged by the Lokayukta Police in Mysuru, which highlighted the extensive scam concerning the illegal allocation of MUDA sites.

On October 28, 2024, searches conducted by the ED uncovered that these allotments were made in severe contravention of the Karnataka Urban Development Authorities (Allotment of Sites in Lieu of Compensation for the Land Acquired) Rules, 2009, as amended in 2015, as well as the Karnataka Urban Development Authority (Incentive Scheme for Voluntary Surrender of Land) Rules, 1991.

Moreover, the searches revealed a profound connection between MUDA officials and real estate entrepreneurs. Evidence indicated that cash payments were made for site allotments as compensation and for the approval of layouts.

Previously, the ED had provisionally attached a total of 283 illegally allotted MUDA sites and three personal properties related to this case. G.T. Dinesh Kumar, the former Commissioner of MUDA, was arrested on September 16, 2025, for allegedly orchestrating massive allotments of MUDA sites and is currently in judicial custody.

Further investigations have disclosed the routing and layering of illicit rewards acquired by Dinesh Kumar, which were used to purchase real estate and construct a commercial building under the names of his relatives and associates.

Additionally, it was found that S.K. Marigowda, the former Chairman of MUDA, received benefits in the form of MUDA sites for facilitating illegal allotments.

As stated by the ED, to date, a total of Rs 460 crore worth of proceeds from crime have been attached under the PMLA, 2002, with further investigations continuing.

Meanwhile, the Special Court for MLAs/MPs in Bengaluru has scheduled a hearing for January 28 regarding an appeal questioning the closure report filed by the Karnataka Lokayukta against Chief Minister Siddaramaiah and others in the MUDA case. This appeal has been lodged by activist Snehamayi Krishna and the ED.