What are the details of the MUDA scam? ED seizes 252 properties valued at Rs 400 crore

Synopsis
Key Takeaways
- 252 illegally allotted MUDA sites have been attached by the ED.
- The total market value of these sites is approximately Rs 400 crore.
- Former MUDA Commissioner G.T. Dinesh Kumar has been arrested.
- Karnataka Chief Minister Siddaramaiah is the case's primary accused.
- The investigation is based on an FIR by Lokayukta Police.
Bengaluru, Sep 18 (NationPress) - The Bengaluru Zonal Office of the Enforcement Directorate (ED) announced on Thursday that its investigation into the Mysuru Urban Development Authority (MUDA) has unveiled a significant scam involving the allotment of MUDA sites, as per an official statement from the ED.
The ED has seized 252 unlawfully allotted MUDA sites to date, with a total market value of around Rs 400 crore.
The statement detailed that the investigation uncovered a widespread scam in the allocation of MUDA sites, which violated numerous statutes and government guidelines through various fraudulent practices.
On September 16, the ED apprehended the former MUDA Commissioner, G.T. Dinesh Kumar, in relation to the illegal allotment of MUDA sites.
Karnataka's Chief Minister Siddaramaiah is identified as the primary accused in this case.
He was presented before the Special Court for MPs/MLAs cases in Bengaluru on September 17.
The court has placed CM Siddaramaiah in ED custody for nine days, until September 26.
The ED highlighted that Dinesh Kumar's role was pivotal in the unlawful allocation of compensation sites to unqualified individuals.
Evidence indicating that bribes were accepted for these illegal allotments—whether in cash, bank transfers, or through movable/immovable assets—has been gathered during the investigation.
Documents collected during the inquiry suggest Dinesh Kumar’s active participation in a comprehensive money laundering scheme executed at MUDA in Mysuru during his tenure.
The ED commenced its investigation based on an FIR filed by Lokayukta Police regarding large-scale illegal allotments of MUDA sites.
The illicit methods involved identifying ineligible beneficiaries and allotting sites using fake or incomplete documentation, in direct contravention of government orders, with some allotment letters backdated.
Funds received for these unlawful allocations were funneled through a cooperative society and bank accounts belonging to Dinesh Kumar's relatives and associates, who were integral to the allotment process.
These funds were subsequently utilized to acquire some of the unlawfully allotted MUDA sites in the names of Dinesh Kumar's relatives.
Further investigations are ongoing.