The Enforcement Directorate (ED) has been granted custody of former Mysuru Urban Development Authority (MUDA) commissioner, G.T. Dinesh Kumar, until September 26, 2025, in connection with a significant site allotment scam in Mysuru. Kumar was arrested under the anti-money laundering law. The ED is actively investigating his involvement in a money laundering scheme that allegedly occurred during his tenure as MUDA commissioner.

The ED's investigation has revealed large-scale illegal site allotments, fraudulent practices, and acceptance of bribes. According to ED sources, Kumar is believed to have indulged in "large-scale illegal allotment" of MUDA sites in exchange for "gratification and pecuniary benefits" and was actively involved in laundering the proceeds. It is alleged that illicit gains were routed through various channels. The arrest followed searches conducted at two of Kumar's residential premises in Bengaluru.

Dinesh Kumar was presented before a special Prevention of Money Laundering Act (PMLA) court in Bengaluru, where the ED sought his remand. The ED is conducting a money laundering investigation into the MUDA allotment of land parcels case based on a Karnataka Lokayukta Police FIR. The Lokayukta had requested permission to investigate both Dinesh Kumar and former MUDA President H.V. Rajeev, but the state government only granted consent to investigate Dinesh.

Kumar's alleged offenses include creating fake documents and using them to facilitate the illegal reallocation of sites for personal gain. The ED claims to have gathered evidence indicating that Kumar amassed wealth by accepting illicit payments.

Dinesh Kumar served as the Commissioner of MUDA in 2022. Following allegations of illegal site allotments under a 50:50 ratio scheme, he was transferred without a new posting. Subsequently, he was appointed as the Registrar of Haveri University, a move that was perceived by some as a reward from the Congress-led government in Karnataka. However, this appointment was later cancelled after the controversy gained traction.

The MUDA case has wider implications, with initial accusations naming Chief Minister Siddaramaiah as an accused. The case relates to alleged irregularities in land allotted to Parvathi, the wife of Karnataka Chief Minister Siddaramaiah. The dispute stems from MUDA's policy of compensating land losers with developed sites, under which Parvathi received 14 plots in Mysuru in exchange for 3.16 acres acquired at Kesare village. However, the Supreme Court and a state-appointed Justice PN Desai Commission have exonerated Siddaramaiah and his family. The Lokayukta police also gave a clean chit to Siddaramaiah, Parvathi, and two others, citing a lack of evidence. In July, the Supreme Court upheld a Karnataka High Court order quashing ED proceedings against Parvathi and also struck down summons issued to Urban Development Minister BS Suresh.

Meanwhile, Snehamayi Krishna, the complainant in the MUDA case, has requested a change of the Investigating Officer and the rejection of the 'B Final Report' submitted against CM Siddaramaiah and others. Krishna is seeking an opportunity to prove the charges in the Special Court for MLAs and MPs.