The Enforcement Directorate (ED) announced on Monday the attachment of fresh assets valued at ₹40 crore linked to the Karnataka MUDA money laundering investigation. This move follows a growing probe that has already resulted in the attachment of assets totaling ₹400 crore.
On October 4, the ED issued a provisional attachment order under the Prevention of Money Laundering Act (PMLA), covering 34 immovable properties, including several sites owned by the Mysuru Urban Development Authority (MUDA). The agency estimates the market value of these newly attached assets at ₹40.08 crore.
This investigation initiated after an FIR filed by the Karnataka Lokayuktha Police, and has spiraled into a significant inquiry into alleged money laundering activities. The agency has traced intricate patterns of financial misconduct, revealing significant connections and questionable transactions.
Earlier, the ED arrested former MUDA Commissioner GT Dinesh Kumar in September, who currently remains in judicial custody. The agency’s findings indicate that Kumar allegedly facilitated the routing and layering of “undue gratification,” pointing to a pattern of behavior that raises serious concerns.
“Such proceeds of crime were used for purchasing immovable properties in the name of relatives and associates of GT Dinesh Kumar. Further investigation also found illegal allotments of 31 MUDA sites by Kumar,” the agency declared in its findings.
The investigation further discloses a “deep nexus” between MUDA officials and real estate developers, as evidence suggests that cash payments facilitated site allotments, compensation, and layout approvals.
Notably, this high-profile case also touches upon alleged irregularities in the land allotment to Parvathi, who is the wife of Karnataka Chief Minister Siddaramaiah. However, the Supreme Court upheld a Karnataka High Court order in July 2024 that quashed the ED proceedings against her, citing lack of substantial evidence.
In its findings, the Justice P.N. Desai Commission, instituted by the state government for a thorough investigation, has cleared Siddaramaiah and his family of any wrongdoing. The Lokayuktha Police also issued a clean chit to Siddaramaiah, Parvathi, and two others, reaffirming the lack of evidence to substantiate the allegations.
The ED’s relentless efforts underscore its commitment to addressing financial irregularities and upholding accountability, keeping a close watch on the intricate and often obscure connections within government dealings.
