Karnataka: ED Seizes 160 Sites Worth Over Rs 300 Crore in MUDA Scam

Mysuru: The Enforcement Directorate (ED) has seized 160 sites in connection with the ongoing investigation into the Mysuru Urban Development Authority (MUDA) scam.

These sites, valued at approximately Rs 81 crore based on guidance value, have an estimated market value exceeding Rs 300 crore.

The ED’s action follows allegations of illegal allotments and benami transactions involving influential individuals and real estate businessmen.

The MUDA Scam: A Brief Overview

The MUDA scam revolves around the illegal allotment of sites that were intended for poor and middle-class individuals who had been waiting for decades.

However, as per a complaint filed by petitioner Snehamayi Krishna, these sites were instead allocated to supporters of Chief Minister Siddaramaiah and other powerful individuals, circumventing established regulations.

The investigation has revealed that the MUDA violated the 50:50 ratio formula by allotting sites inappropriately and through fabricated documents.

The ED’s seizure of 160 sites is part of its probe into these illegal transactions, as officials suspect benami dealings that could involve significant sums of money.

The Seized Sites and Their Owners

According to sources, the 160 sites were allotted to various individuals in violation of the rules. Among the seized properties, 31 sites were registered in the name of one Ravi, 41 sites in the name of Abdul Wahid, 40 sites under the Cathedral Society, and 48 sites in the names of other individuals.

The ED has initiated the process of confiscating these properties, with the seizure order now sent to the Sub-Registrar’s office for implementation.

Some notable irregularities include the registration of 31 sites under Ravi’s name on September 11, 2023. These properties are located in some of Mysuru’s most upscale areas, such as Kuvempunagar, Dattagalli, and Vijayanagara.

Additionally, 25 sites were registered under Abdul Wahid’s name in March 2023, with further registrations taking place later in the year.

ED’s Investigation and Legal Actions

The Enforcement Directorate has taken these actions under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, as they have discovered indications of money laundering and benami transactions.

The ED suspects that a large number of these properties were illegally sold by real estate businessmen, generating unaccounted profits and cash.

The investigation has already resulted in the provisional attachment of 14 immovable properties worth approximately Rs 300 crore in connection with the MUDA scam.

Also Read | MUDA Scam: Lokayukta Submits Investigation Report to Karnataka High Court

The ED had earlier attached properties linked to Chief Minister Siddaramaiah’s wife, B.M. Parvathi, who is named as the second accused in the case. The involvement of ex-MUDA commissioner D.B. Natesh has also come under scrutiny, with the ED alleging that he played a pivotal role in facilitating these illegal allotments.

Legal Setbacks and Court Orders

While the ED has been active in pursuing the case, it has faced some setbacks in the legal process. On January 29, the Dharwad Bench of the Karnataka High Court stayed the summons issued by the ED to Chief Minister Siddaramaiah’s wife, B.M. Parvathi, and Minister for Urban Development, Byrathi Suresh, in connection with the MUDA scam.

The court questioned the urgency of the ED’s actions, asking, “What is the tearing hurry?” as it granted a stay on the summons until February 10, 2024.

Despite this legal setback, the investigation continues, with the ED focusing on tracking down the source of the illegal allotments and uncovering further links between the political figures, bureaucrats, and real estate developers involved.

The Role of Real Estate Businessmen

The ED’s investigation has also uncovered the role of real estate businessmen in the scam. These individuals reportedly purchased illegally allotted sites and resold them at a massive profit, further compounding the scale of the financial irregularities.

The proceeds from these transactions appear to have been laundered through a series of benami dealings, which is central to the ED’s investigation.

Political Fallout and Ramifications

The MUDA scam has generated significant political heat, with Chief Minister Siddaramaiah and his associates at the center of the controversy.

The opposition has raised concerns over the alleged involvement of top political figures in the illegal allotments, while the ED’s actions have placed additional pressure on the state government.

The ongoing investigation and legal proceedings are expected to have a major impact on the political landscape in Karnataka, especially in the lead-up to upcoming elections.