What Are the Latest Developments in the K'taka Double Compensation Scam?
Click to start listening
Synopsis
The Bengaluru Zonal Office of the ED has taken decisive action against 17 individuals involved in the K'taka double compensation scam. This unfolding case reveals a complex web of fraud, with significant financial implications and ongoing investigations that could change the landscape of accountability in Karnataka.
Key Takeaways
- 17 individuals face prosecution in the K'taka double compensation scam.
- The scam involved fraudulent claims at the Karnataka Industrial Area Development Board.
- ED has uncovered a total of 29 fraudulent transactions amounting to Rs 64.48 crore.
- Properties worth Rs 13 crore have been attached by the ED.
- Investigation is ongoing with significant implications for governance.
Bengaluru, Sep 9 (NationPress) - On Tuesday, the Bengaluru Zonal Office of the Enforcement Directorate (ED) lodged a supplementary prosecution complaint against 17 individuals at a Prevention of Money Laundering Act (PMLA) court located in Mangaluru. This complaint is tied to the double compensation scam involving the Karnataka Industrial Area Development Board (KIADB) in Dharwad, specifically regarding the case of V.D. Sajjan and others, under the provisions of the PMLA, 2002.
The scam was orchestrated by V.D. Sajjan, a retired Special Land Acquisition Officer from Dharwad, in collaboration with the other accused.
During the investigation, three individuals were arrested, and they are currently in judicial custody under the PMLA, 2002, as stated by the ED.
The ED's investigation revealed a sophisticated modus operandi used by the accused to illegally claim and withdraw double compensation from the KIADB in the names of individuals who had already received compensation, were deceased, or were otherwise ineligible.
Furthermore, the investigation disclosed that the accused fraudulently updated Aadhar details to create fictitious identities.
These fabricated identities were used to establish bank accounts for laundering the proceeds of crime, the ED reported.
Initially, the ED's investigation began based on an FIR related to seven fraudulent transactions at the KIADB in Dharwad, totaling Rs 19.9 crore. However, the investigation uncovered a total of 29 fraudulent transactions amounting to Rs 64.48 crore.
The details of these fraudulent transactions have been communicated to the Law Enforcement Agencies (LEA) involved in the scheduled offence under Section 66(2) of the PMLA, 2002.
Meanwhile, the ED has already attached properties valued at nearly Rs 13 crore in relation to this case.
A previous prosecution complaint was filed against 22 accused individuals in the PMLA Additional District and Sessions Court in Mangaluru back in November 2024.
The court has acknowledged the case, which is currently under trial.
Further investigations are ongoing.
Point of View
The K'taka double compensation scam highlights significant issues regarding governance and accountability. The involvement of high-ranking officials and the complexity of fraudulent schemes call for urgent reforms in regulatory frameworks to prevent such malpractices in the future. As we follow this case, it emphasizes the need for transparency and stringent measures against corruption.
NationPress
09/09/2025
Frequently Asked Questions
What is the K'taka double compensation scam?
The K'taka double compensation scam involves fraudulent claims for compensation from the Karnataka Industrial Area Development Board, where individuals claimed double compensation for land already compensated or for deceased individuals.
Who is V.D. Sajjan?
V.D. Sajjan is a retired Special Land Acquisition Officer from Dharwad implicated in the scam for colluding with others to falsely claim compensation.
How much money was involved in the scam?
The investigation initially uncovered fraudulent transactions amounting to Rs 64.48 crore.
What actions has the ED taken?
The ED has filed a supplementary prosecution complaint against 17 individuals and has attached properties worth nearly Rs 13 crore related to the scam.
What is the current status of the investigation?
The investigation is ongoing, with further inquiries being conducted, and the case is currently under trial in Mangaluru.
