The Enforcement Directorate (ED) has arrested former Mysuru Urban Development Authority (MUDA) commissioner GT Dinesh Kumar in connection with a large-scale illegal site allotment scam. The arrest follows searches at two of his residential premises in Bengaluru related to the case. The ED alleges that during his tenure as MUDA commissioner, Kumar was involved in the illegal allocation of MUDA sites in exchange for gratification and other benefits. Investigators also uncovered his active involvement in money laundering activities.
Legal proceedings and custody
Dinesh Kumar was summoned by the ED for questioning and was taken into custody following an interrogation that lasted from morning until evening. He was produced before a special Prevention of Money Laundering Act (PMLA) court in Bengaluru, where the agency sought his custody for further investigation. Before the arrest, several properties belonging to Kumar were attached by the ED as part of the ongoing probe.
Broader context and related investigations
The MUDA land allocation scam inquiry is linked to an FIR filed by Karnataka Lokayukta Police, which named prominent individuals, including Karnataka Chief Minister Siddaramaiah, his family members, and others involved in alleged irregularities concerning land parcels. The ED's investigation continues as the agency looks deeper into the illegal site allotments and associated financial crimes tied to the scam.
Dinesh Kumar was suspended by the Karnataka state government in September last year following an internal inquiry into widespread irregularities in the Mysuru Urban Development Authority (MUDA). The government accused Kumar of undertaking several illegal actions during his tenure as MUDA commissioner. The case also involves allegations linked to the allotment of land to Parvathi B M, the wife of Karnataka Chief Minister Siddaramaiah.
Allegations and investigations
The controversy centers on the allotment of 14 land plots to Parvathi under MUDA's 50:50 compensation scheme. These plots, located in an upscale area of Mysuru, were allegedly given in exchange for 3.16 acres of her land at Kesare village, which MUDA had acquired to develop a residential layout. It is claimed that the compensatory sites were of significantly higher market value compared to the acquired land, raising suspicions of irregularities.
The Karnataka Lokayukta police registered an FIR naming Siddaramaiah, his wife Parvathi, his brother-in-law B M Mallikarjuna Swamy, and others involved in related land transactions. Siddaramaiah and Parvathi had earlier received a clean chit from the Lokayukta police after initial investigations cited insufficient evidence. Additionally, the Justice P N Desai Commission set up by the state government exonerated Siddaramaiah and his wife, finding no illegality in the allotment process.
Political stance
The Supreme Court upheld a Karnataka High Court decision quashing Enforcement Directorate (ED) proceedings against Parvathi and cancelled the summons issued to Urban Development Minister B S Suresh. Despite these developments, the ED continues its investigation into alleged money laundering linked to the land allotments. Siddaramaiah has firmly denied any wrongdoing, asserting that the land was taken without his wife’s consent and compensated fairly with alternative plots. The MUDA compensation scheme itself has faced criticism and was eventually revoked in 2023 amid widespread controversy.
This ongoing case remains a focal point of political and legal scrutiny, highlighting the complexities of land acquisition and urban development processes in Karnataka.
