The Enforcement Directorate (ED) announced on Monday its latest move in the ongoing money laundering investigation linked to the Mysuru Urban Development Authority (MUDA). The agency has attached assets valued at ₹40 crore, raising the total attachments in this case to a staggering ₹400 crore.
This provisional attachment covers 34 immovable properties, among which are significant properties associated with the Mysuru Urban Development Authority. According to the ED’s statement, the attachments were formalized on October 4 under the provisions of the Prevention of Money Laundering Act (PMLA).
The investigation stems from a filed FIR by the Karnataka Lokayuktha Police, which triggered a series of probes into the alleged wrongdoing within the MUDA. Law enforcement has focused on the dealings of GT Dinesh Kumar, the former MUDA Commissioner who the ED arrested in September and who remains in judicial custody.
Investigators have reported uncovering evidence of “undue gratification” received by Kumar. The dismissal of these findings could lead to significant implications for local governance and real estate practices in Karnataka.
“Proceeds of crime were used to purchase immovable properties in the names of Kumar’s relatives and associates,” the ED stated. The agency further revealed Kumar’s involvement in the illegal allotment of 31 MUDA sites.
Moreover, evidence suggests that there exists a deep nexus between MUDA officials and local real estate businessmen. There are allegations of cash payments linked to site allotments, compensation for projects, and layout approvals.
Notably, the case has brought scrutiny to political figures as well. The investigation also delves into irregularities concerning land allotment to Parvathi, the wife of Karnataka Chief Minister Siddaramaiah. This angle has further complicated the political and social landscape surrounding the ongoing investigation.
Despite the ED’s serious allegations, the Supreme Court upheld a Karnataka High Court order in July 2024, quashing the proceedings against her. Furthermore, the Justice P.N. Desai Commission, instituted by the state government, has exonerated Siddaramaiah and his family from wrongdoing, while the Lokayuktha Police also cleared them of allegations, citing a lack of evidence.
This ongoing investigation not only raises concerns about potential corruption within MUDA but also reflects on the broader implications for society when public officials allegedly exploit their positions for personal gain. The ED’s actions and the fallout of the case are likely to resonate across Karnataka, impacting both political and developmental avenues.
