MUDA scam: ED attaches illegally allotted properties worth Rs 20.85cr; total attachment touches Rs 460cr
The ED initiated the investigation on the basis of an FIR filed by the Lokayukta Police, Mysuru, in the case of a large-scale scam involving illegal allotment of sites by MUDA.
Bengaluru: The Enforcement Directorate (ED), Bengaluru Zonal Office, has provisionally attached 10 immovable properties, including six illegally allotted Mysuru Urban Development Authority (MUDA) sites, three other immovable properties and one commercial building, having a market value of Rs 20.85 crore on January 21 under the Prevention of Money Laundering Act (PMLA), 2002, in the MUDA scam case involving Chief Minister Siddaramaiah and others.
Proceeds of crime having a market value of Rs 460 crore have been attached so far in the case, an official statement by the ED said on Thursday.
The ED initiated the investigation on the basis of an FIR filed by the Lokayukta Police, Mysuru, in the case of a large-scale scam involving illegal allotment of sites by MUDA.
Searches were undertaken by the ED on October 28, 2024. The searches revealed that the sites were allotted in gross violation of the Karnataka Urban Development Authorities (Allotment of Sites in Lieu of Compensation for the Land Acquired) Rules, 2009, amended in 2015, and the Karnataka Urban Development Authority (Incentive Scheme for Voluntary Surrender of Land) Rules, 1991, the ED said.
Further, the search action also revealed a deep nexus between MUDA officers and officials and real estate businessmen. Evidence also revealed payment of cash for allotment of sites as compensation and approval of layouts, it added.
Earlier, the ED had provisionally attached a total of 283 illegally allotted MUDA sites and three personal properties in the case. Further, G.T. Dinesh Kumar, former Commissioner of MUDA, who allegedly made large-scale allotments of MUDA sites, was arrested under the provisions of the PMLA on September 16, 2025. Presently, Dinesh Kumar is in judicial custody under the PMLA, 2002.
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Further investigation under the PMLA revealed routing and layering of undue gratification obtained by Dinesh Kumar. Such proceeds of crime were used for purchasing immovable properties and construction of a commercial building in the name of relatives and associates of Dinesh Kumar.
The investigation also revealed that gratification was received by former Chairman of MUDA, S.K. Marigowda, in the form of MUDA sites for illegal allotment of sites.
Proceeds of crime having a market value of Rs 460 crore have been attached so far in the case under the provisions of the PMLA, 2002. Further investigation is in progress, the ED said.
Meanwhile, the Special Court for MLAs/MPs in Bengaluru has posted to January 28 the matter relating to an appeal petition questioning the filing of a closure report against Chief Minister Siddaramaiah and others by the Karnataka Lokayukta in the MUDA case. The appeal petition has been filed by activist Snehamayi Krishna and the ED.
