MUDA scam: ED attaches 92 sites worth ₹100 crore
What's the story
The Enforcement Directorate (ED) on Tuesday said it has provisionally attached 92 immovable properties (MUDA sites) worth around ₹100 crore in connection with the Mysuru Urban Development Authority (MUDA) scam.
The properties are reportedly linked to housing cooperative societies and individuals acting as fronts for influential persons, including MUDA officials.
The action was taken under the Prevention of Money Laundering Act (PMLA), 2002, the ED said.
Investigation details
Lokayukta FIR named Siddaramaiah as 1st accused
The ED's probe began in September 2024 after the Lokayukta Police in Mysuru registered an FIR against Karnataka Chief Minister Siddaramaiah and others for alleged illegal allotment of housing plots.
The Lokayukta FIR named CM Siddaramaiah as the first accused and was filed under various sections of the Indian Penal Code, 1860, and Prevention of Corruption Act, 1988.
An enforcement case information report (ECIR) was registered days later by the ED.
Scam modus operandi
Large-scale scam in allotment of MUDA sites
The ED's investigation revealed a large-scale scam in the allotment of MUDA sites by flouting various statutes and government orders/guidelines.
The role of former MUDA commissioners, including GT Dinesh Kumar, has emerged as instrumental in the illegal allotment of compensation sites to ineligible entities/individuals.
The accused identified ineligible beneficiaries and made illegal allotments using fake/incomplete documents and backdating allotment letters.
Further actions
Total provisional attachment value now around ₹400 crore
The gratification received for these illegal allotments was reportedly routed through a cooperative society and bank accounts of relatives/associates of key officers involved in the allotment process.
These were then used to purchase some illegally allotted MUDA sites in the names of MUDA officers' relatives.
The attachment of these 92 MUDA sites is in addition to the previous attachment of 160 sites worth around ₹300 crore, taking the total provisional attachment value to approximately ₹400 crore.