The Enforcement Directorate (ED) announced on Monday that it has attached fresh assets valued at ₹40 crore in connection with a money laundering investigation linked to the Karnataka MUDA. This operation marks a significant development in the ongoing case, which has now seen total asset attachments reaching ₹400 crore.
This latest provisional attachment order was issued on October 4 and encompasses 34 immovable properties, including multiple sites associated with the Mysuru Urban Development Authority (MUDA). The estimated market value of these assets is ₹40.08 crore, as reported by the ED.
The investigation stems from an FIR filed by the Karnataka Lokayuktha Police, which set the groundwork for the ED’s inquiry into alleged irregularities. The agency reported that its investigation has revealed a pattern of routing and layering of “undue gratification” received by former MUDA Commissioner GT Dinesh Kumar. He is currently in judicial custody following his arrest last month.
“Such proceeds of crime were used for purchasing immovable properties in the name of relatives and associates of GT Dinesh Kumar,” the ED asserted, further detailing the discovery of illegal allotment of 31 MUDA sites under Kumar’s authority.
The ED also highlighted evidence of a “deep nexus” between MUDA officials and local real estate businesses, indicating that cash payments facilitated site allotments, compensation, and layout approvals.
Among the irregularities investigated is the allegation of dubious land allotment to Parvathi, the wife of Karnataka Chief Minister Siddaramaiah. However, the Supreme Court sustained a July 2024 Karnataka High Court ruling that dismissed ED proceedings against her, effectively clearing her of these allegations.
The Justice P.N. Desai Commission, appointed by the state government to examine these land allotment issues, also exonerated Siddaramaiah and his family. Additionally, the Lokayuktha Police provided a clean chit to Siddaramaiah, Parvathi, and two other individuals, citing a substantial lack of evidence to support the claims made against them.
Despite these developments, the ED continues its extensive investigation into the Karnataka MUDA case, aiming to root out corruption and ensure accountability among public officials.
