The Enforcement Directorate (ED) has intensified its crackdown on the Mysore Urban Development Authority (MUDA) scam, provisionally attaching 92 properties worth approximately Rs 100 crore. This latest action brings the total value of properties seized in connection with the case to Rs 400 crore. The attached properties are primarily MUDA sites located in prime areas of Mysuru.
According to the ED, the attached properties are registered in the names of entities such as housing cooperative societies and individuals believed to be fronts or dummies acting on behalf of influential individuals, including MUDA officials. This suggests a sophisticated network designed to conceal the true beneficiaries of the alleged scam.
The ED's investigation is based on a First Information Report (FIR) filed by the Lokayukta Police in Mysuru, which accuses Karnataka Chief Minister Siddaramaiah and others of violating the Indian Penal Code and the Prevention of Corruption Act. The investigation has revealed a large-scale scam involving the illegal allotment of MUDA sites through fraudulent means, including the flouting of statutes, government orders, and guidelines.
The ED alleges that ex-MUDA commissioners, including G.T. Dinesh Kumar, played a key role in the illegal allotment of compensatory sites to ineligible individuals and entities. Evidence gathered during the investigation reportedly indicates that bribes were received in the form of cash, bank transfers, and movable/immovable properties in exchange for making these illegal allotments. The modus operandi involved identifying ineligible beneficiaries and allocating sites using fake or incomplete documentation, directly contravening government regulations.
Previously, in January 2025, the ED had attached 160 MUDA sites with a market value of around Rs 300 crore. The recent attachment of 92 additional properties is a continuation of this earlier action. The cumulative market value of the "proceeds of crime" provisionally attached so far is approximately Rs 400 crore, according to the ED.
The opposition has alleged that the total value of the scam could potentially range from Rs 3,000 crore to Rs 5,000 crore. They claim that under Chief Minister Siddaramaiah's watch, fake documents were used for illegal site allotments, and bribes were routed through cooperative societies, characterising it as "organized loot." It has also been alleged that Siddaramaiah's wife, B.M. Parvathi, received compensatory plots in a prime location in Mysuru, where property values are significantly higher compared to the original location of her land acquired by MUDA. Following the eruption of controversy, she returned the sites to MUDA.
The ED has invoked the Prevention of Money Laundering Act (PMLA), 2002, to attach the properties, effectively preventing any transactions involving these sites. The agency says its investigation is ongoing, and further attachments and revelations may be forthcoming as the probe progresses.
