DHARWAD: The Directorate of Enforcement (ED), Bengaluru zonal office, on August 9, conducted search operations on 12 different premises in Bengaluru and Dharwad. The raids, conducted under the provisions of Prevention of Money Laundering Act (PMLA), 2002, were related to an alleged fraud committed in land acquisition by the Karnataka Industrial Area Development Board (KIADB), Dharwad zonal office.
KIADB had acquired properties for projects like the Hubballi airport and IIT Dharwad among others.
The raids were conducted on seven premises in Bengaluru, including the KIADB head office, and five premises in Dharwad-Hubballi, including KIADB Zonal office, Dharwad.
ED initiated the investigation based on an FIR filed against VD Sajjan, former special land acquisition officer, KIADB, Dharwad, and others associated with him, including realtors. Later, the case was transferred to CID. The FIR and chargesheet stated that Sajjan and other officials of Dharwad KIADB conspired with land brokers and other accused to sanction Rs 19.99cr to seven individuals on the pretext of compensation for land acquisition.
But these individuals had already been paid compensation earlier, causing loss to the government exchequer. The evidence gathered during the raid revealed that Rs 72.55 crore in total has been siphoned off using this modus operandi.
The evidence gathered includes the original payment register, final notification issued by KIADB for acquisition of land and RTGS payment forms prepared in the names of fake land owners.
It was also revealed that money was being siphoned off through ‘Malki payments’. The raid also resulted in seizure of various incriminating electronic, digital evidence, records and documents, and recovery of Rs 1.50 crore cash.
Bank deposits in the name of the main accused amounting to Rs 55 lakh were also frozen. Details of movable, immovable properties acquired by the main accused have been gathered, and further investigation is on.