MUDA ‘scam’: ED attaches sites worth Rs 100 crore in Mysuru

The ED initiated an investigation based on an FIR registered by the Lokayukta police in Mysuru under various sections of the Indian Penal Code and the Prevention of Corruption Act against Karnataka Chief Minister Siddaramaiah and others.

The investigation revealed “a large-scale scam in allotment of MUDA sites by flouting various statutes and government orders/ guidelines and by other fraudulent means”, the ED said in a statement.

The central agency further said that the role of ex-MUDA commissioners, including G T Dinesh Kumar, has emerged as “instrumental in illegal allotment of compensation sites to ineligible entities/individuals”.

The evidence, with respect to obtaining bribes for making illegal allotments in the form of cash, bank transfer, movable or immovable properties, has been gathered during the investigation, the ED said.

According to the agency, the modus operandi for making illegal allotments involved the identification of ineligible beneficiaries and making allotments using fake or incomplete documents in direct violation of government orders and also backdating of allotment letters in some cases.

The gratification received for making such illegal allotments was routed through a co-operative society and bank accounts of the relatives or associates of the officers playing key roles in the allotment process, the ED added. “The gratification thus received was further used to purchase some of these illegally allotted MUDA sites in the name of relatives of MUDA officers,” the ED said in its statement.

The present attachment of 92 MUDA sites follows the previous attachment of 160 MUDA sites with a market value of approximately Rs 300 crore.