Large-scale scam in allotment of Mysore urban development body's sites in Karnataka: ED

New Delhi, Sep 18 (PTI) The Enforcement Directorate (ED) on Thursday claimed that its money laundering probe has found a "large-scale" scam in the allotment of MUDA sites in Karnataka by flouting various statutes and government orders.

It also said that the role of ex-MUDA (Mysuru Urban Development Authority) Commissioner G T Dinesh Kumar was instrumental in "illegal" allotment of compensation sites to ineligible entities/individuals.

The MUDA case involves alleged irregularities in land allotted to Parvathi, the wife of Karnataka Chief Minister Siddaramaiah.

Kumar was arrested by the federal probe agency in Bengaluru on September 16 and a special court for trial of MPs/MLAs cases on Wednesday sent him to ED custody till September 26.

"The evidence and documents collected during the course of investigation in this case have indicated active involvement of GT Dinesh Kumar in the comprehensive money laundering scheme perpetrated at MUDA, Mysuru during his tenure as Commissioner," the agency claimed.

Kumar was suspended by the state government in September last year after an internal inquiry was conducted by the state government into the functioning of MUDA following reports of large-scale irregularities.

The money laundering case stems from an FIR of the Karnataka Lokayuktha Police.

The ED said probe found that a "large-scale scam" in the allotment of MUDA sites was perpetrated by "flouting" various statutes, government orders and guidelines and through other fraudulent means.

"The role of ex-MUDA commissioner Kumar is 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/immovable properties has been gathered during the course of the investigation," it said.

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

The gratification received for making these illegal allotments was routed through a co-operative society and bank accounts of the relatives/associates of Dinesh Kumar, who has played a "key role" in the allotment process, it said.

The gratification, thus received, was further used to purchase some of these illegally allotted MUDA sites in the name of relatives of Dinesh Kumar, the ED found.

The agency said it has attached 252 "illegally" allotted MUDA sites so far, having a market value of about Rs 400 crore.

The Supreme Court in July upheld a Karnataka High Court decision to quash ED proceedings against Parvathi in this case.

The Justice P N Desai Commission, constituted by the state government in this case, has also exonerated Siddaramaiah and his family.

The Lokayuktha Police has also given a clean chit to Siddaramaiah, Parvathi and two others, stating that the allegations "could not be proven due to a lack of evidence". PTI NES KSS KSS