The Enforcement Directorate (ED) announced on Monday its decision to attach fresh assets estimated at ₹40 crore in connection with the ongoing Karnataka MUDA money laundering investigation. This latest development brings the total value of properties attached by the agency to ₹400 crore, raising serious concerns about corruption linked to the state’s urban development authority.
The provisional attachment order, issued on October 4, encompasses 34 immovable properties, prominently including multiple sites affiliated with the Mysuru Urban Development Authority (MUDA). This order was executed under the Prevention of Money Laundering Act (PMLA), as per the agency’s statement.
The roots of this investigation trace back to an FIR filed by the Karnataka Lokayuktha Police, highlighting ongoing scrutiny about the misuse of authority within MUDA. The ED has conducted extensive inquiries, focusing on the financial dealings of former MUDA Commissioner GT Dinesh Kumar, who remains in judicial custody following his arrest in September.
“Such proceeds of crime were used for purchasing immovable properties in the name of relatives and associates of GT Dinesh Kumar,” stated an ED official, emphasizing the complex web of transactions involved. Additionally, the agency noted the illegal allotment of 31 MUDA sites by Kumar, suggesting a systematic abuse of power.
The ED’s findings point to a “deep nexus” between MUDA officials and local real estate entrepreneurs. Evidence reportedly indicates the existence of cash payments tied to site allotments, compensation packages, and layout approvals. This transaction pattern raises substantial questions about accountability within the government bodies responsible for urban planning and development.
Interestingly, the MUDA case intertwines with a contentious land allotment dispute involving Parvathi, the wife of Chief Minister Siddaramaiah. Once under heavy scrutiny, the Supreme Court upheld a Karnataka High Court order in July 2024 that quashed ED proceedings against her, citing insufficient grounds.
In a significant blow to the ED’s investigation, the Justice P.N. Desai Commission, tasked with probing the allegations, subsequently exonerated Siddaramaiah and his family from any wrongdoing. The commission’s findings, corroborated by the Lokayuktha Police, absolved Siddaramaiah, Parvathi, and two additional individuals, stating a lack of evidence to support the claims of involvement in corrupt activities.
This evolving case continues to capture public attention, throwing light on the pervasive issues of corruption and governance within urban planning authorities in the state. As the ED intensifies its investigations into the money laundering activities involving MUDA, the implications for Karnataka’s political landscape could be profound.
