Siddaramaiah Claims ED's MUDA Scam Press Release is Politically Driven

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Siddaramaiah Claims ED's MUDA Scam Press Release is Politically Driven

Synopsis

Karnataka CM Siddaramaiah asserts that the ED's press release regarding the MUDA scam is politically driven. He defends himself against allegations of misuse of state funds and illegal allotments, while the ED continues its investigation into the matter.

Key Takeaways

  • Siddaramaiah's Response: He labels the ED's claims as politically motivated.
  • Accusations Against Him: He is accused of facilitating illegal property allotments for his wife.
  • ED's Findings: The agency has provisionally attached properties worth Rs 300 crore.
  • Legal Measures: Siddaramaiah promises action against microfinance scams.
  • Upcoming Events: A public meeting to honor the 1924 Belagavi Congress Session is planned.

Bengaluru, Jan 20 (NationPress) The Chief Minister of Karnataka, Siddaramaiah, has labeled the Enforcement Directorate's (ED) announcement concerning the Mysuru Urban Development Authority (MUDA) scam as being “politically motivated”.

Siddaramaiah is identified as the primary accused in the MUDA case, which also implicates others involved in the unauthorized allotments facilitated through the MUDA. His spouse, B.M. Parvathi, is the second accused.

In a press conference on Monday at Vidhana Soudha in Bengaluru, CM Siddaramaiah addressed the ED's statement about the MUDA scam, asserting, “There is no connection between me and the press statement released by the ED.”

He further accused the BJP of unnecessarily utilizing the ED to disseminate this statement.

In response to allegations of misappropriation of state funds concerning the MUDA and Valmiki Corporation scams, as well as claims of utilizing state tax money for a national convention in Belagavi, he countered by stating that “there is no question of misuse of funds.”

Addressing the rise of microfinance scams in the rural regions of Mysuru and Chamarajanagar districts, along with the distress caused to the residents, he assured that legal measures would be enforced against the entities involved in exploiting the public through microfinance frauds.

CM Siddaramaiah also indicated that a public gathering will be organized to honor the centenary of the 1924 Belagavi Congress Session, following the unveiling of the Mahatma Gandhi statue.

In a setback for CM Siddaramaiah, the ED has provisionally seized 142 properties valued at approximately Rs 300 crore under the Prevention of Money Laundering Act (PMLA), 2002, related to the MUDA scam.

The ED's statement on January 17 mentioned that the role of D.B. Natesh, the former MUDA commissioner, has been crucial in the illegal allotment of compensation plots to CM Siddaramaiah’s spouse, B.M. Parvathi.

Investigative searches further uncovered that numerous sites, beyond the 14 allocated to CM Siddaramaiah’s wife B.M. Parvathi, have been unlawfully distributed by MUDA as compensation to real estate moguls, who subsequently sold these sites for substantial profits, generating significant unaccounted cash.

Petitioner Snehamayi Krishna has claimed that the illegal allotments by MUDA amount to thousands of crores.

The ED has stated that the profits obtained have been laundered to appear as if derived from legitimate sources.

“The searches also disclosed that sites had been allocated in the names of Benami/dummy individuals linked to influential persons and real estate entrepreneurs. Incriminating evidence concerning the payment of illegal bribes to the former MUDA chairman and MUDA commissioner in the form of properties, MUDA sites, cash, etc., was recovered,” the ED added.

“The seized properties are registered under various individuals acting as real estate businessmen and agents,” the ED stated.

The ED's investigation was initiated based on an FIR filed by the Lokayuktha Police in Mysuru, under various sections of the IPC, 1860, and the Prevention of Corruption Act, 1988, against Siddaramaiah and others.

Allegations assert that Siddaramaiah exploited his political position to secure compensation of 14 sites for his wife, B.M. Parvathi, in exchange for 3 acres 16 guntas of MUDA-acquired land.

This land was originally obtained by MUDA for Rs 3.24 lakh, and the compensation in the form of 14 sites in the upscale Vijayanagar area of Mysuru is valued at around Rs 56 crore.

The ED revealed that funds were funneled through a cooperative society for purchasing properties, luxury vehicles, etc., in the names of relatives of G.T. Dinesh Kumar, the former MUDA commissioner.

Ongoing investigations are in progress.

Previously, CM Siddaramaiah had categorically denied any allegations of illegal allotments. His wife had returned the 14 sites allocated to the MUDA.

The Karnataka High Court has postponed the hearing on a plea demanding a Central Bureau of Investigation (CBI) probe into alleged irregularities within MUDA to January 27.

Siddaramaiah is currently under investigation by the Lokayukta and the ED for purportedly securing 14 MUDA sites for his family in violation of regulations.

Siddaramaiah has filed a petition seeking to dismiss the proceedings against him in the MUDA case.