The Enforcement Directorate (ED) has launched an extensive investigation into alleged irregularities in land allotments by the Mysore Urban Development Authority (MUDA), implicating Karnataka Chief Minister Siddaramaiah, his family members, and key MUDA officials. The investigation has uncovered a web of corruption, including large-scale illegal de-notification of government-acquired land, fraudulent land conversions, and misuse of political influence. The estimated value of the sites involved in the scandal reportedly exceeds ₹700 crore, making it one of the most significant land-related scams in Karnataka in recent years.
Key Allegations and Findings
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Illegal De-Notification and Land Conversion:The ED alleges that several parcels of land, originally acquired by MUDA for public development, were illegally de-notified without proper justification, review, or expert analysis. In many cases, the de-notifications were granted without even informing or consulting relevant urban planning authorities. The ED’s findings suggest that revenue department officials deliberately falsified site inspection reports to facilitate these de-notifications. These manipulated reports omitted MUDA’s previous developmental work on the land and falsely portrayed the land as barren or under unauthorized occupation. Satellite imagery and municipal records, however, directly contradict these claims, suggesting large-scale manipulation of official documents.
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Fraudulent Site Allotments and Benami Transactions:According to the ED, a total of 1,095 sites were illegally allotted under a controversial 50:50 compensation scheme that was originally designed to compensate individuals whose land had been acquired by MUDA. However, the investigation has revealed that a significant number of these sites were allocated to benami or dummy applicants posing as landowners. The ED suspects that many of these allottees were, in fact, acting as proxies for real estate businessmen, influential political figures, and bureaucrats who sought to acquire prime urban land at heavily subsidized rates. In return, these proxies were reportedly compensated financially, with some transactions being carried out in cash to evade scrutiny.
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Involvement of Siddaramaiah’s Family Members:The ED’s probe has also uncovered that 14 prime-location sites were illegally allotted to BM Parvathi, Siddaramaiah’s wife, in direct violation of statutory guidelines. The agency claims that the entire process of land allocation was facilitated through undue political influence and fraudulent documentation. Notably, Siddaramaiah’s son, Yathindra, was a member of the MUDA board at the time these transactions took place, raising concerns about potential conflicts of interest. The ED suspects that Yathindra’s position may have played a crucial role in ensuring that the allotments to his mother were approved without legal hurdles.
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Forgery and Document Manipulation:The investigation has revealed multiple instances of forged documents, tampering of official records, and backdated approvals to justify fraudulent transactions. One of the most glaring discrepancies found in the probe was related to an indemnity bond submitted by BM Mallikarjuna Swamy, a key figure in the case. The bond, which was meant to ensure legal compliance, did not bear his signature, suggesting that it may have been fabricated to falsely establish ownership claims.
ED’s Actions and Raids
The ED has taken swift action by conducting multiple raids and seizing key documents linked to the case. In October 2024, a team of 12 ED officials raided the MUDA office in Mysuru, confiscating files, financial records, and internal correspondence related to the de-notifications and site allotments. During the raids, the agency questioned several senior officials, including MUDA Commissioner AN Raghunandan, regarding the alleged irregularities. The ED is now closely examining financial transactions, ownership records, and bank statements to track potential money laundering activities linked to the scam.
The agency has also identified the role of former MUDA Commissioner GT Dinesh Kumar, who is accused of accepting bribes in various forms, including cash, properties, and luxury vehicles, in exchange for approving fraudulent site allotments. The ED suspects that other high-ranking bureaucrats and political figures may also be involved, and further investigations are underway to ascertain their role in the scam.
Chief Minister Siddaramaiah’s Response
Chief Minister Siddaramaiah has strongly denied the allegations, calling the ED’s actions a politically motivated witch hunt. He has questioned the agency’s jurisdiction over the matter, arguing that the Karnataka Lokayukta is already conducting a parallel investigation based on directives issued by the Governor and the district court. Siddaramaiah stated that he and his family members had done nothing wrong and that the land allotted to his wife had been legally obtained. He has also accused the central government of using investigative agencies to target political opponents, particularly ahead of the upcoming elections.
Despite his strong rebuttal, the ED has pointed out that BM Parvathi voluntarily returned the 14 allotted sites to MUDA on October 1, 2024, following the initiation of the probe. However, the agency has asserted that the return of the sites does not absolve her of wrongdoing, as the act of money laundering had already been committed under Section 3 of the Prevention of Money Laundering Act (PMLA), 2002.
Current Status and Next Steps
The ED has formally submitted its findings to the Karnataka Lokayukta, urging further action against those involved in the scam. Investigators are now focused on tracing the financial trail of the illegally allotted land, examining whether money from these transactions was funneled into offshore accounts, real estate deals, or other investments. The agency is also scrutinizing shell companies that may have been used to launder proceeds from the fraudulent site allotments.
Legal experts believe that if proven guilty, those involved could face severe penalties, including hefty fines and imprisonment under the PMLA. Given the political ramifications of the case, it is likely to become a major election issue, with opposition parties demanding a judicial inquiry into the matter.
This case highlights the ongoing challenges in tackling corruption within government bodies and ensuring transparency in land allocation processes. The results of the ED and Lokayukta investigations will be critical in determining the extent of the alleged irregularities and the accountability of the individuals involved. The coming months will be crucial in shaping the legal and political consequences of this high-profile case.
