ED arrests ex-MUDA chief in Karnataka land scam case
What's the story
The Enforcement Directorate (ED) has arrested former Mysuru Urban Development Authority (MUDA) commissioner Dinesh Kumar under the Prevention of Money Laundering Act (PMLA). The arrest is in connection with an alleged illegal site allotment scandal. Kumar was taken into custody after the ED conducted searches at two Bengaluru residences linked to him.
Allegations
Kumar accused of masterminding illegal allotments
The ED has accused Kumar of masterminding large-scale illegal allotments of MUDA sites during his tenure. The agency alleges these allotments were made in exchange for "gratification and pecuniary benefits." Preliminary investigations indicate his active involvement in money laundering activities, with the ED now working to trace the illicit funds generated through this alleged scam.
Custody request
ED to seek custody for further interrogation
The ED is expected to produce Kumar before a special PMLA court in Bengaluru. The agency will seek his custody for further interrogation. This comes after the Karnataka cabinet accepted Justice P N Desai Commission's report, which gave a "clean chit" to Chief Minister Siddaramaiah and his family in alleged MUDA site allotment irregularities.
Report findings
Commission report clears Siddaramaiah family
The commission, headed by former Karnataka High Court judge Justice P N Desai, submitted its report to Chief Secretary Shalini Rajneesh on July 31. Law and Parliamentary Affairs Minister H K Patil said, "The report makes it clear that there is no truth in allegations made against the chief minister and his family. It has also asked for action against certain officials on various accounts. We (the cabinet) have accepted the report and its recommendations."
Controversial allegations
MUDA site allotment case explained
In the MUDA site allotment case, it is alleged that 14 compensatory sites were allotted to Siddaramaiah's wife in an upmarket suburb of Mysuru. The MUDA allotted the plots to Parvathi under a 50:50 ratio scheme in exchange for 3.16 acres of her land, where it developed a residential layout. These sites had higher property value than the location of her land. Lokayukta Police had earlier given a clean chit to Siddaramaiah, Parvathi, and others due to lack of evidence.