The Enforcement Directorate (ED) attached 34 immovable properties, including Mysuru Urban Development Authority (MUDA) sites having a market value of ₹40.08 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the MUDA scam case.
The ED's Bengaluru Zonal Office attached the properties on October 4, having initiated its investigation based on a First Information Report (FIR) registered by the Lokayukta Police, Mysore, concerning a large-scale scam involving illegal site allotments by MUDA.
The ED's inquiry exposed the routing and layering of illegal financial gains obtained by GT Dinesh Kumar, the former MUDA Commissioner. Kumar was arrested last month on charges of money laundering and unlawful site allocation.
"Such proceeds of crime were used for purchasing immovable properties in the name of a relative and associates of GT Dinesh Kumar. Further investigation also revealed illegal allotment of 31 MUDA sites by GT Dinesh Kumar," the ED confirmed in a statement.
Searches conducted by the ED on October 18 and 28, 2024 revealed that the sites were allocated in "gross violation" of various government orders and rules, including the Karnataka Urban Development Authorities (Allotment of Sites in lieu of compensation for the land Acquired) Rules, 2009 (as amended in 2015).
Furthermore, the ED stated that the search operations uncovered a deep nexus between MUDA officers and real estate businessmen. "Evidence also revealed payment of cash for allotment of sites as compensation and approval of layouts," the agency added.
Previously in this case, the ED had provisionally attached a total of 252 illegally allotted MUDA sites.
The agency also noted that GT Dinesh Kumar, who facilitated large-scale illegal allotment of MUDA sites, was arrested under the PMLA on 16 September. Kumar is presently remanded in judicial custody. So far, Proceeds of Crime with a total market value of ₹440 crores have been attached under the PMLA in connection with the case.
Also read: ED arrests ex-MUDA commissioner Dinesh Kumar
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