BENGALURU: The Directorate of Enforcement (ED), Bengaluru zonal office on October 4 provisionally attached 34 immovable properties, including Mysore Urban Development Authority (MUDA) sites worth Rs 40.08 crore, under the Prevention of Money Laundering Act (PMLA), 2002 in connection with the alleged MUDA scam case. The ED had initiated investigation on the basis of an FIR registered by the Lokayukta police, Mysuru, in the large-scale scam in the allotment of sites by MUDA.
“The ED investigation revealed routing and layering of undue gratification obtained by former commissioner, MUDA, GT Dinesh Kumar. Such proceeds of crime were used for purchasing immovable properties in the name of relatives/associates of Kumar. Further investigation also revealed illegal allotment of 31 MUDA sites by him,” the ED stated in an official release on Monday.
The central agency had conducted searches in the case on October 18 and 28 last year. “The searches revealed that the sites were allotted in gross violation of letter dated March 14, 2023, government order dated October 27, 2023, Karnataka Urban Development Authorities (Allotment of sites in lieu of compensation for the land acquired) Rules, 2009 as amended in 2015 and Karnataka Urban Development Authority (Incentive scheme for voluntary surrender of land) Rules, 1991. Further, search action also revealed a deep nexus among MUDA officers/officials and real estate businessmen. Evidence also revealed payment of cash for allotment of sites as compensation and approval of layouts,” the ED added.
The Directorate had earlier provisionally attached 252 illegally allotted MUDA sites in the case. Kumar was arrested on September 16 under PMLA for allegedly making “large-scale illegal allotment of MUDA sites,” the agency stated. He has been remanded to judicial custody. Proceeds of crime worth approximately Rs 440 crore have been attached so far in the case under PMLA.
