MUDA scam: ED attaches 92 immovable properties worth ₹100 crore in PMLA case linked to Karnataka CM Siddaramaiah

The Enforcement Directorate's Bangalore unit has provisionally attached 92 immovable properties (MUDA sites) worth around ₹100 crore on June 9, the agency informed in a post on social media platform X (formerly Twitter). 

These sites have been attached under provisions of the Prevention of Money Laundering Act (PMLA, 2002), in connection with MUDA Scam case matter related to Karnataka Chief Minister Siddaramaiah and others.

 The MUDA scam case has seen cumulative attachment of ₹400 crore so far, including a previous attachment of 160 MUDA sites worth around ₹300 crore. Further investigation is under progress, as per the ED. 

ED probe — What we know so far

• The properties attached by the ED on June 9 are registered in the name of entities such as housing cooperative societies and individuals who are fronts or dummies for influential persons, including MUDA officials, as per the official release, ANI reported.
• The ED's investigation was based on an FIR registered by the Lokayuktha Police, Mysore, under various sections of the IPC, 1860 and the Prevention of Corruption Act, 1988, against Siddaramaiah and others.
• The probe revealed large-scale scam in allotment of MUDA sites, which involved flouting various statutes and government orders/ guidelines and by other fraudulent means.

• The role of ex-MUDA commissioners, including GT Dinesh Kumar, has emerged as instrumental in the illegal allotment of compensation sites to ineligible entities/individuals.
• The evidence with respect to obtaining bribes for making illegal allotments in the form of cash, bank transfer, movable/ immovable properties has been gathered during the course of the investigation, as per the release.
• The modus operandi for making illegal allotment involved identification of ineligible beneficiaries and making allotment using fake documents/incomplete documents in direct violation of government orders and also back dating of allotment letters in some cases.
• The gratification received for making these illegal allotments was routed through a co-operative society and bank accounts of the relatives/associates of the officers playing a key role in the allotment process.
• The gratification thus received was further used to purchase some of these illegally allotted MUDA sites in the name of relatives of MUDA officers.

(With inputs from ANI)