The Enforcement Directorate (ED) has been actively investigating the Mysore Urban Development Authority (MUDA) scam in Karnataka, leading to significant developments in the case. Recent actions by the ED include arrests and asset seizures, indicating a major crackdown on alleged corruption within MUDA.
One of the key figures under scrutiny is former MUDA Commissioner G.T. Dinesh Kumar. The ED's investigation suggests that Kumar was instrumental in the illegal allotment of compensation sites to ineligible individuals. These allotments were allegedly carried out through violations of legal procedures, government orders, and other fraudulent means.
The modus operandi of the scam involved identifying ineligible beneficiaries and allocating sites using fake or incomplete documentation, directly contravening government regulations. Bribes were allegedly paid to facilitate these illegal transactions, with funds routed through cash and banking channels, involving cooperative societies and the accounts of associates and family members.
The ED has provisionally attached 92 properties worth ₹100 crore in connection with the MUDA land allotment scam. This brings the total value of seized assets in the case to ₹400 crore. The attached assets are registered under the names of housing cooperative societies and individuals believed to be acting as dummy owners for influential figures, including MUDA officials.
The alleged scam grabbed attention after claims that Karnataka Chief Minister Siddaramaiah's family benefited from the controversial 50:50 scheme. The Lokayukta is investigating Siddaramaiah's role in the allotment of 14 housing sites to his wife in 2021 as compensation for the acquisition of 3.16 acres of land gifted to her by her brother in 2010. The ED has also filed an Enforcement Case Information Report (ECIR) against the Chief Minister based on this transaction and conducted raids on MUDA headquarters in Mysuru.
The 50:50 scheme, which was scrapped in 2023, involved granting 50% of land in developed areas of Mysore to land losers in exchange for 50% of land acquired by MUDA in underdeveloped areas. The ED alleges that most land allotments under this scheme were made in the names of dummy individuals and later sold by real estate businessmen, generating unaccounted cash.
The ED's investigation revealed that 1,095 plots, with a market value exceeding ₹700 crore, were illegally allotted. These illegal land allotments were allegedly made in exchange for luxury cars, cash, and immovable properties. The proceeds from the sale of these allotted sites were disguised as commissions or profits from real estate businesses, with the money received projected as legitimate earnings. However, the ED asserts that this constitutes proceeds of crime under the Prevention of Money Laundering Act (PMLA).
In October 2024, the ED conducted raids on the premises of two former MUDA commissioners, D.B. Natesh and G.T. Dinesh Kumar, as well as real estate developers in Mysuru, Bengaluru, and Mandya. Incriminating documents were recovered during these raids. Complainant Snehamayi Krishna submitted a list of 928 sites allegedly allotted illegally under the 50:50 ratio scheme by MUDA during the tenures of Natesh and Kumar.
