New Delhi [India], October 6 : The Enforcement Directorate (ED) attached 34 immovable properties, including Mysuru Urban Development Authority (MUDA) sites having a market value of Rs 40.08 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the MUDA scam case.
ED's Bengaluru Zonal Office attached these properties on October 4 under the Prevention of Money Laundering Act (PMLA), 2002.
ED initiated an investigation based on an FIR registered by the Lokayuktha Police, Mysore, in the case of a large-scale scam involving the allotment of sites by MUDA.
An ED investigation revealed the routing and layering of undue gratification obtained by GT Dinesh Kumar, the former Commissioner of MUDA, whom the agency arrested last month on charges of money laundering and illegal site allotment.
"Such proceeds of crime were used for purchasing immovable properties in the name of relative and associates of GT Dinesh Kumar. Further investigation also revealed illegal allotment of 31 MUDA sites by GT Dinesh Kumar," said the ED in a statement.
Searches in the case were undertaken by ED on October 18, 2024 and October 28, 2024. The searches revealed that the sites were allotted in "gross violation" of letter dated March 14, 2023, government order dated October 27, 2023, Karnataka Urban Development Authorities (Allotment of Sites in lieu of compensation for the land Acquired) Rules, 2009 as amended in 2015 and Karnataka Urban Development Authority (Incentive Scheme for voluntary Surrender of Land) Rules, 1991.
Furthermore, ED stated that the search action also revealed a deep nexus between MUDA officers and real estate businessmen. "Evidence also revealed payment of cash for allotment of sites as compensation and approval of layouts," it said.
Earlier, in the case, the ED had provisionally attached a total of 252 illegally allotted MUDA sites.
The agency also said that GT Dinesh Kumar, who made large scale illegal allotment of MUDA sites was arrested under the provisions of PMLA, 2002 on September 16.
Presently, GT Dinesh Kumar has been remanded to judicial custody. Proceeds of Crime having market value of Rs 440 crores have been attached so far in the case under the provisions of PMLA, 2002.