The Enforcement Directorate (ED) on Monday said it has attached fresh assets worth ₹40 crore in connection with the Karnataka MUDA-linked money laundering investigation.
According to the agency, a provisional attachment order covering 34 immovable properties, including some Mysuru Urban Development Authority (MUDA) sites, was issued on October 4 under the Prevention of Money Laundering Act (PMLA).
The market value of these assets is estimated at ₹40.08 crore, the ED said in a statement.
The money laundering probe originates from an FIR filed by the Karnataka Lokayuktha Police.
With this latest action, the agency has so far attached properties worth ₹400 crore as part of its ongoing investigation.
The ED had earlier arrested former MUDA Commissioner GT Dinesh Kumar in September. He is currently in judicial custody.
The agency’s investigation has allegedly uncovered routing and layering of “undue gratification” received by Kumar.
“Such proceeds of crime were used for purchasing immovable properties in the name of relatives and associates of GT Dinesh Kumar. Further investigation also found illegal allotment of 31 MUDA sites by Kumar,” the agency claimed.
The ED further alleged a “deep nexus” between MUDA officials and real estate businessmen, claiming that evidence shows cash payments for site allotments, compensation, and layout approvals.
The MUDA case also involves alleged irregularities in land allotment to Parvathi, wife of Karnataka Chief Minister Siddaramaiah.
However, the Supreme Court, in July 2024, upheld a Karnataka High Court order that quashed ED proceedings against her in this matter.
The Justice P.N. Desai Commission, appointed by the state government to probe the issue, has exonerated Siddaramaiah and his family, while the Lokayuktha Police has also given a clean chit to Siddaramaiah, Parvathi, and two others, citing lack of evidence to substantiate the allegations.
