ED attaches Rs 300 crore worth properties in MUDA-linked money laundering case involving Karnataka CM

The investigation also revealed that funds were channeled through a co-operative society, which was used to purchase properties and luxury vehicles in the names of relatives of GT Dinesh Kumar, the former MUDA commissioner.

The Enforcement Directorate (ED) on Friday attached more than 140 immovable properties valued at approximately Rs 300 crore as part of its investigation into a money laundering case linked to the Mysuru Urban Development Authority (MUDA). The case involves Karnataka Chief Minister Siddaramaiah and other individuals.

The ED alleged that Siddaramaiah, a senior Congress leader, leveraged his political influence to secure compensation for 14 prime sites in the name of his wife, BM Parvathi, in exchange for 3 acres and 16 guntas of land acquired by MUDA. The land, originally bought by MUDA for Rs 3.24 lakh, was compensated with 14 plots in a posh locality, with a total value of Rs 56 crore, according to the agency.

The federal agency stated that the attached properties are registered under several individuals involved in real estate, including businessmen and agents. It highlighted the role of former MUDA Commissioner DB Natesh, who allegedly played a pivotal part in the unlawful allocation of compensation sites to Parvathi.

Investigations further revealed that beyond the 14 sites allotted to Parvathi, multiple other plots were fraudulently distributed by MUDA to real estate businessmen. These individuals later sold the plots for significant profits, generating large amounts of "unaccounted" cash, the ED stated. It alleged that the profits from these illegal transactions were laundered and presented as legitimate income.

Additionally, the ED claimed that many of the sites were allotted in the names of "benami" or dummy individuals, allegedly linked to influential figures and real estate businessmen. Raids conducted by the agency uncovered incriminating evidence of illegal payments, including immovable properties, Muda sites, and cash, connected to the former MUDA chairman and commissioner.

The investigation also revealed that funds were channeled through a co-operative society, which was used to purchase properties and luxury vehicles in the names of relatives of GT Dinesh Kumar, the former MUDA commissioner.