Former MUDA Commissioner Faces Money Laundering Charges
The Enforcement Directorate (ED) has taken decisive legal action against G T Dinesh Kumar, the former commissioner of Mysuru Urban Development Authority (MUDA), by filing a prosecution complaint before a special court that handles cases involving MPs and MLAs. This development comes as part of the ongoing investigation into a massive land allotment scandal that has rocked the urban development sector in Karnataka.
The central agency arrested Kumar in September 2024, and he remains in judicial custody as the legal proceedings advance. The prosecution complaint, formally submitted on November 14, 2024, invokes the stringent provisions of the Prevention of Money Laundering Act (PMLA), 2002.
Unraveling the Money Laundering Scheme
According to the ED's investigation findings, Kumar played an instrumental role in orchestrating what the agency describes as a "comprehensive money laundering scheme" during his tenure as MUDA commissioner. The evidence collected points to his active involvement in illegal activities that compromised the authority's land allocation processes.
The probe revealed that Kumar facilitated the illegal allotment of compensation sites to ineligible individuals and entities through various fraudulent means. Investigators have gathered substantial evidence showing that bribes were received in multiple forms, including cash payments, bank transfers, and movable and immovable properties.
The modus operandi involved identifying ineligible beneficiaries and processing allotments using fake or incomplete documentation. In some instances, the agency discovered that allotment letters were deliberately back-dated to circumvent regulations and government orders.
Massive Financial Scale and Property Attachments
The scale of the financial irregularities is staggering, with the ED attaching 283 illegally allotted MUDA sites and three additional immovable properties with a combined estimated value of ₹450 crore. This attachment represents one of the largest property seizures in recent times related to urban development scams in Karnataka.
The investigation uncovered that gratification received for these illegal allotments was cleverly routed through a cooperative society and bank accounts belonging to Kumar's relatives and associates. The funds were subsequently used to purchase some of the very same illegally allotted MUDA sites in the names of Kumar's family members.
The ED stated that Kumar bought illegally allotted MUDA sites in his relatives' names, effectively creating a circular system where bribes received for illegal allotments were reinvested to acquire properties through the same corrupt system.
Case Origins and Broader Implications
The case originally stemmed from a First Information Report (FIR) registered by the Lokayukta police, following allegations of systematic illegal allotment of MUDA sites. The ED's money laundering investigation began after these initial revelations pointed toward larger financial crimes.
The scandal gained additional political significance when it emerged that the MUDA 50:50 land compensation scheme had also involved Karnataka Chief Minister Siddaramaiah's family. According to allegations made by an RTI activist, the chief minister's family received 14 sites in 2021 as compensation for a 3.16-acre property acquired by the Authority in Kesare village, Mysuru.
The ED's prosecution complaint marks a significant milestone in the investigation, setting the stage for what promises to be a closely watched legal battle that could have far-reaching implications for urban development governance and anti-corruption efforts in Karnataka.
