ED arrests ex-MUDA chief Dinesh Kumar under PMLA in Karnataka land scam case

Urban Development Authority (MUDA) commissioner Dinesh Kumar

The Enforcement Directorate (ED) has arrested former Mysuru Urban Development Authority (MUDA) commissioner Dinesh Kumar under the provisions of the Prevention of Money Laundering Act (PMLA) in connection with an alleged illegal site allotment scandal, officials confirmed on Wednesday.

Kumar is expected to be produced before a special PMLA court in Bengaluru, where the ED is likely to seek his custody for further interrogation. His arrest follows a series of searches carried out by the central agency on Tuesday at two residential premises in Bengaluru linked to the former official.

According to the ED, Dinesh Kumar is accused of orchestrating large-scale illegal allotments of MUDA sites during his tenure as commissioner. Officials allege that these allotments were made in exchange for "gratification and pecuniary benefits". Preliminary investigations suggest his active involvement in money laundering activities, with the ED now focusing on tracing the trail of illicit funds generated through the alleged scam.

Desai panel give 'clean chit' to Siddaramaiah in MUDA Scam

The Karnataka cabinet, on 4 September, accepted Justice P N Desai Commission report giving a "clean chit" to Chief Minister Siddaramaiah and his family in a case about alleged irregularities in the allotment of sites by MUDA.

The Commission, headed by the former judge of the Karnataka High Court, had submitted its report to Chief Secretary Shalini Rajneesh on July 31.

"We (the government) had constituted Justice P N Desai's one man Commission, which has submitted its report in two volumes. The report makes it clear that there is no truth in allegations made against the chief minister and his family. It has also asked for action against certain officials on various accounts. We (the cabinet) have accepted the report and its recommendations," Law and Parliamentary Affairs Minister H K Patil said.

What is MUDA Scam Case?

In the MUDA site allotment case, it is alleged that 14 compensatory sites were allotted to CM Siddaramaiah's wife in an upmarket area in Mysuru (Vijayanagar Layout 3rd and 4th stages), which had a higher property value as compared to the location of her land, which had been "acquired" by MUDA.

The MUDA had allotted plots to Parvathi under a 50:50 ratio scheme in lieu of 3.16 acres of her land, where it developed a residential layout.

Under the controversial scheme, MUDA allotted 50% of developed land to the land losers in lieu of undeveloped land acquired from them for forming residential layouts.

It was also alleged that Parvathi had no legal title over the 3.16 acres of land at survey number 464 of Kasare village, Kasaba hobli of Mysuru taluk.

Lokayukta Police had earlier given a clean chit to CM Siddaramaiah, Parvathi, and two other accused in connection with the case, stating that allegations against them have not been proven due to a lack of evidence.

CM Siddaramaiah, his wife, brother-in-law B M Mallikarjun Swamy, Devaraju -- from whom Swamy had purchased a land and gifted it to Parvathi -- and others have been named in the FIR registered by the Lokayukta police.