The Enforcement Directorate (ED) has arrested G.T. Dinesh Kumar, the former commissioner of the Mysuru Urban Development Authority (MUDA), in connection with an alleged illegal site allotment scam. The arrest, made on Wednesday, September 17, 2025, follows searches conducted by the agency at two residential premises in Bengaluru linked to Kumar.

Kumar is accused of orchestrating large-scale illegal allotments of MUDA sites during his tenure as commissioner, allegedly in exchange for "gratification and pecuniary benefits". The ED's investigation has revealed his "active" involvement in money laundering activities, and the agency is currently focused on tracing the illicit funds generated through the alleged scam. Kumar was presented before a special Prevention of Money Laundering Act (PMLA) court in Bengaluru, where the ED is expected to seek his custody for further interrogation.

The ED's investigation stems from a First Information Report (FIR) registered by the Lokayukta Police in Mysuru. The FIR names Karnataka Chief Minister Siddaramaiah, his wife B.M. Parvathi, and others in connection with alleged irregularities in the allotment of land parcels.

Specifically, the case involves allegations that 14 compensatory sites were allotted to Siddaramaiah's wife in an upscale area in Mysuru, with a higher property value compared to her land acquired by MUDA. It is alleged that MUDA allotted plots to Parvathi under a 50:50 ratio scheme in return for 3.16 acres of her land.

Notably, two probes, one by the Lokayukta police and another by a commission headed by retired High Court judge P.N. Desai, had previously given a clean chit to Siddaramaiah and his family regarding the allotment of the 14 sites to his wife. However, the Lokayukta police is conducting further inquiry into the alleged irregularities in the allotment of compensatory sites under the 50:50 scheme from 2016 to 2024, and an additional report is still awaited. The P.N. Desai Commission has recommended legal action against officials responsible for the illegal allotment of sites to individuals without proper compensation rights.

In June 2025, the ED had provisionally attached 92 properties worth an estimated ₹100 crore in connection with the MUDA scam. The ED stated that its investigation revealed a large-scale scam in the allotment of MUDA sites by flouting statutes, government orders, and guidelines through fraudulent means. Furthermore, in January 2025, the ED had attached 142 immovable properties worth ₹300 crore as part of its money laundering probe connected to the MUDA case involving Siddaramaiah.

Chief Minister Siddaramaiah has distanced himself from the arrest of Dinesh Kumar, stating that he has "nothing to do with it". The High Court of Karnataka had earlier deemed the ED's actions of searching the residence of D.B. Natesh, a former MUDA Commissioner, summoning him, and recording his statement in connection with the allotment of sites to Parvathi as "unwarranted, illegal, and an abuse of the process of law".