ED Intensifies MUDA Scam Probe with ₹20.85 Crore Property Attachment
The Enforcement Directorate (ED) has taken decisive action in the ongoing Mysuru Urban Development Authority (MUDA) money laundering investigation by attaching 10 immovable properties with an estimated value of ₹20.85 crore. This latest move comes as part of a comprehensive probe into alleged large-scale irregularities in land allotments that has rocked Karnataka's political landscape.
Details of the Attached Properties
According to official statements from the central agency, the attached assets include six illegally allotted MUDA sites, three immovable properties, and a commercial building. These properties represent what investigators have identified as proceeds of crime obtained through systematic violations of statutory provisions governing urban development authorities and land surrender schemes.
Political Ramifications and Investigation Origins
The investigation traces its origins to a First Information Report (FIR) registered by the Lokayukta Police in Mysuru, which specifically named Chief Minister Siddaramaiah among the suspects in the alleged scam. This development has added significant political weight to the case, bringing it to the forefront of Karnataka's governance and accountability discussions.
Uncovering Systematic Violations
ED searches conducted on October 18 and 28, 2024, revealed that the allotments were executed in blatant disregard for multiple regulatory frameworks. Investigators found clear violations of government communications issued on March 14 and October 27, 2023, along with fundamental rules that govern urban development authorities across the state.
Corruption Network Exposed
The investigation has uncovered a troubling nexus between MUDA officials and real estate businessmen, with substantial evidence of cash payments exchanged for illegal site allotments and layout approvals. This pattern of corruption suggests a well-established system operating outside legal boundaries for significant financial gain.
Previous Actions and Arrests
This latest attachment follows earlier provisional attachments of 283 illegally allotted MUDA sites along with three personal properties. The agency has already made significant headway in the case with the arrest of former MUDA Commissioner G T Dinesh Kumar on September 16, 2025, under the Prevention of Money Laundering Act (PMLA), 2002. Kumar remains in judicial custody as the investigation continues.
Money Trail and Layering Techniques
The probe has meticulously traced how illegal gratification received by Dinesh Kumar was allegedly routed and layered through complex financial maneuvers. Investigators have documented how these funds were subsequently used to acquire immovable properties and construct commercial buildings registered under the names of relatives and associates, effectively concealing the illicit origins of the wealth.
Additional Suspects and Gratification Patterns
Further investigation has revealed that former MUDA chairman S K Marigowda allegedly received MUDA sites as gratification for facilitating illegal allotments. This pattern of reciprocal benefits between officials and beneficiaries has emerged as a central theme in the ongoing probe.
Cumulative Financial Impact
With this latest attachment, the total value of proceeds of crime attached by the ED under PMLA provisions has reached an estimated market value of ₹460 crore. This staggering figure underscores the massive scale of the alleged financial irregularities within the MUDA system and represents one of the most significant corruption cases currently under investigation in Karnataka.
The case continues to develop as investigators pursue additional leads and examine the full extent of the alleged money laundering operations. The attachment of these properties represents a crucial step in the legal process to recover illicit gains and hold accountable those involved in the systematic manipulation of urban development processes for personal enrichment.
