The Enforcement Directorate (ED) has taken decisive action in the ongoing Karnataka MUDA money laundering investigation by attaching fresh assets worth ₹40 crore. This substantial move comes after a provisional attachment order was issued on October 4, focusing on 34 immovable properties, including prime sites of the Mysuru Urban Development Authority (MUDA).
With this latest seizure, the agency’s total asset attachment in connection with the investigation has now reached ₹400 crore. The assets, which have a market value estimated at ₹40.08 crore, are tied to allegations of financial irregularities and corruption within MUDA.
The investigation dates back to an FIR filed by the Karnataka Lokayuktha Police, which alleged significant malpractice in land allotments and financial dealings. The ED’s scrutiny of former MUDA Commissioner GT Dinesh Kumar, who remains in judicial custody since his arrest in September, reveals a troubling narrative of misappropriation and profit.
“The investigation has revealed that proceeds of crime were used for purchasing properties in the names of Kumar’s relatives and associates. This includes the illegal allotment of 31 MUDA sites,” the agency stated.
The ED also highlighted a troubling nexus between MUDA officials and real estate businessmen. Evidence indicates substantial cash transactions linked to site allotments, compensation for land, and approvals for layouts. As the investigation unfolds, it becomes clear that the deep-seated corruption may have far-reaching implications.
Notably, the case has also drawn in allegations involving land allotment to Parvathi, the wife of Karnataka Chief Minister Siddaramaiah. However, legal battles ensued when the Supreme Court upheld a Karnataka High Court order in July 2024, which put an end to ED proceedings against her.
Ongoing investigations reveal that the Justice P.N. Desai Commission, appointed by the Karnataka government, has exonerated both Siddaramaiah and his family members. The Lokayuktha Police also cleared Siddaramaiah, Parvathi, and two others, citing a complete lack of evidence to support claims of wrongdoing.
The ED’s relentless pursuit of justice continues as it seeks to uncover the full extent of corruption within the Karnataka MUDA dealings. With significant assets already seized and arrests made, the agency strives to ensure accountability among those in public office.
