Bengaluru, March 12 (NationPress) The Enforcement Directorate (ED) from its Bengaluru Zonal Office has filed a prosecution complaint (chargesheet) against Valmark Realty Holdings Private Limited along with 19 other individuals, including certain officials from the Bruhat Bengaluru Mahanagara Palike (BBMP), in relation to an alleged fraud concerning the illegal acquisition of Transferable Development Rights (TDR) through forged documents.

As per an official announcement, the case revolves around the fraudulent procurement and sale of Development Rights Certificates (DRCs) issued by the BBMP.

The ED clarified that TDR or DRC indicates a designation that specifies the built-up area an owner can either utilize at the same site or transfer elsewhere. These rights are typically granted when land is surrendered at no cost to an urban local authority for public uses such as road expansion, recreational spaces, or other needs outlined in the Master Plan.

The investigation began following two FIRs lodged by the Anti-Corruption Bureau (ACB) in Bengaluru.

According to the chargesheet submitted by the ACB, Valmark Realty Holdings Private Limited, represented by its director Rathan Lath, is accused of acquiring Development Rights Certificates and subsequently selling the TDR to real estate firms and individuals, thereby making illicit profits amounting to around Rs 27.68 crore.

Investigators also uncovered that TDR brokers K. Suresh, K. Gautham, and their associates allegedly colluded with prior landowners and specific BBMP officials to fraudulently secure TDR from the civic authority.

The ED stated that the accused concealed the fact that the property had already been sold, and they falsely assessed a building's value at Rs 1.26 crore to facilitate the unlawful issuance of DRCs for 10,672.14 square meters.

Previously, the ED executed searches at nine locations, including the offices of Valmark Realty Holdings Private Limited, the residence of its director, and properties associated with builders, brokers, and alleged fictitious TDR applicants.

These searches reportedly highlighted the involvement of brokers and former landowners in this alleged fraud.

The investigation suggests a broader conspiracy where brokers B.S. Surendranath, K. Gautham, and K. Suresh, in collaboration with the company and certain BBMP officials, allegedly altered land records to obtain TDR advantages.

As per the ED, the accused supposedly arranged for the mutation of RTC records in favor of the heirs of a landowner named Revanna, despite the land in Kowdenahalli already being converted into a revenue layout, with several third-party purchasers in possession.

Officials indicated that agreements and general powers of attorney were employed to begin administrative processes.

Following this, spot mahazars and building valuation reports were created, and the land was misrepresented as agricultural land to facilitate the issuance of development rights.

The probe also revealed that K. Suresh and K. Gautham, along with their associates, allegedly formed agreements with individuals named Muniraju and Srinivas to obtain TDR benefits, despite them no longer being the rightful owners of the land.

Powers of attorney were subsequently registered at the Sub-Registrar’s office in Indiranagar to facilitate TDR procurement from the BBMP.

The ED further alleged that the land had already been sold and was vacant, lacking any structure eligible for TDR benefits.

Nonetheless, a building located in a neighboring survey number was falsely claimed to be situated on the relevant land to support the recommendation and issuance of Development Rights Certificates.

Investigators also discovered that the proceeds from the sale of TDR were channeled through various bank accounts before being incorporated into real estate transactions and routine business expenses, essentially depleting the proceeds of crime.

The agency mentioned that it is investigating similar allegations of TDR fraud in other regions designated for road widening by the BBMP.