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ED attaches 142 properties worth 300-cr in Muda case

Jan 18, 2025 07:40 AM IST

The federal agency made the attachments under the Prevention of Money Laundering Act (PMLA) as part of its probe which began on September 2024

The Enforcement Directorate (ED) on Friday said it has attached 142 immovable properties worth 300 crore in the agency’s money laundering probe in connection with the Mysuru Urban Development Authority (MUDA) case involving Karnataka chief minister Siddaramaiah.

Karnataka chief minister Siddaramaiah (PTI)
Karnataka chief minister Siddaramaiah (PTI)

The federal agency made the attachments under the Prevention of Money Laundering Act (PMLA) as part of its probe which began on September 2024. The case stems from a first information report (FIR) filed by the Karnataka Lokayukta against Siddaramaiah, his wife BM Parvathi and brother-in-law Mallikarjuna Swamy.

“ED Bangalore zonal office has provisionally attached 142 immovable properties having market value of 300 crore (approx.) under the provisions of the PMLA in connection with the case against Siddaramaiah, the incumbent chief minister of Karnataka and others. The attached properties are registered in the name of various individuals who are working as real-estate businessmen and agents,” the agency said in a statement.

The case pertains to a land deal when a 3.16 acre plot was gifted to Parvathi by her brother Mallikarjuna Swamy in 2010. MUDA illegally developed the land between 2011-13, following which Parvathi , in 2014, sought compensation. In 2017, MUDA agreed to compensate her, and she was given 14 plots in 2022. The complainants argue that the compensatory land, provided under MUDA’s 50:50 scheme, was far more valuable than the original land.

“It is alleged that Siddaramaiah has used his political influence to get compensation of 14 sites in the name of his wife in lieu of 3 acres 16 guntas of land acquired by MUDA. The land was originally acquired by Muda for 324,700. The compensation in the form of 14 sites at posh locality is worth 56 crore (approx),” the financial crimes probe agency said.

The CM has denied any wrongdoing and dismissed calls for his resignation, attributing the case to political moves orchestrated by the Bharatiya Janata Party (BJP).

ED, in its statement, said that former MUDA commissioner DB Natesh was “instrumental” in the illegal allotment of compensation sites to Parvathi. Following raids at several locations, including the 14 sites alloted to Parvathi, ED said that the MUDA illegally allotted the plots as compensation to real estate businessmen, who in turn have sold these sites at huge profit and generated huge amounts of unaccounted cash.

“The profit generated has been laundered and shown as derived out of legitimate sources,” it said. “The searches also revealed that sites have been allotted in the name of benamis or dummy persons of influential persons and real estate businessmen...”

The agency further said that “money was routed through a co-operative society for purchase of property, luxury vehicles etc. in the name of relatives of GT Dinesh Kumar, who was the previous commissioner of MUDA”.

The investigation was initiated following a complaint lodged by Gangaraju and local  social worker  Snehamayi Krishna from Mysore.

Amid the developments, Snehamayi Krishna has escalated his complaint by filing a writ petition in the high court, seeking the transfer of the ongoing investigation to the Central Bureau of Investigation (CBI). The petition was presented and heard by Justice M Nagaprasanna of the Bengaluru high court . During the proceedings, Supreme Court lawyer Maninder Singh, representing Krishna, argued that the complexity of the case and the gravity of the allegations necessitated a CBI probe to ensure an impartial and thorough investigation.

In a counter-argument, senior advocate Ravi Varma Kumar, who represents Siddaramaiah, vehemently objected to the transfer of the investigation, asserting that the claims made by Krishna are unfounded and unrelated to the current inquiry. Kumar contended that critical objections raised by the respondents had not been adequately filed or addressed, maintaining that the ongoing investigation by the ED should continue without interruption.

The high court, after hearing arguments from both sides, has adjourned the matter to January 27. It directed that a report from the Lokayukta be submitted by that date, placing additional pressure on Siddaramaiah’s administration to respond to these serious allegations.

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