ED Targets Karnataka CM Siddaramaiah in ₹300 Crore MUDA Scam

Madhu
3 Min Read

The Enforcement Directorate (ED) is currently investigating the Mysuru Urban Development Authority (MUDA) scam and has taken action by seizing 160 sites that were improperly allocated to various individuals, violating the established 50:50 ratio formula. According to sources, these sites have been seized under the Prevention of Money Laundering Act due to indications of benami transactions involving substantial amounts of money.

Based on official guidance, the estimated value of these sites is around ₹81 crore, while their market value exceeds ₹300 crore. Among the seized properties, 31 sites were registered under an individual named Ravi, 41 sites under Abdul Wahid, 40 sites associated with the Cathedral Society, and 48 sites owned by various other individuals.

Investigations revealed that MUDA registered 31 sites in a single day under Ravi’s name on September 11, 2023. Of these, 12 are located in Kuvempunagar and the remaining 19 in Dattagalli and Vijayanagara—areas known for their upscale developments in Mysuru. Similarly, Abdul Wahid had 25 sites registered in his name on March 8, 2023, with additional registrations occurring later.

The ED has sent a seizure order to the Sub-Registrar’s office to commence the confiscation process for these properties.

Petitioner Snehamayi Krishna alleged that around 3,000 to 4,000 sites meant for poor and middle-class families were instead allocated to supporters of Chief Minister Siddaramaiah and other influential figures, circumventing regulations through forged documents.

Recently, the ED faced a setback when the Dharwad Bench of the Karnataka High Court stayed the summons issued to Chief Minister Siddaramaiah’s wife, B.M. Parvathi, and Urban Development Minister Byrathi Suresh regarding their involvement in the MUDA land scam.

The court raised concerns about the haste of the ED’s actions, inquiring, “What is the rush?” as it placed a stay on the summons until February 10.

In a significant development for CM Siddaramaiah, the ED provisionally attached 14 immovable properties valued at approximately ₹300 crore as part of its investigation into the MUDA scam on January 17.

Siddaramaiah is named as the primary accused in this case, which also involves others who received illegal allotments through MUDA. The ED’s investigation has highlighted the role of former MUDA commissioner D.B. Natesh in facilitating illegal site allocations to CM Siddaramaiah’s wife.

Further searches revealed that numerous sites were improperly allotted as compensation to real estate developers who subsequently sold them at inflated prices, generating substantial unaccounted cash flow.

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