Bengaluru: Enforcement Directorate (ED) on Thursday named Karnataka Chief Minister Siddaramaiah, his family members, and several top officials of Mysore Urban Development Authority (MUDA) in an investigation into a land scam. The scam, involving irregular site allotments by the civic body, amounts to an estimated Rs 56 crore.
According to ED, the investigation uncovered large-scale irregularities, including the illegal de-notification of government-acquired land and fraudulent land conversions. These actions allegedly took place when Siddaramaiah was the Deputy Chief Minister of Karnataka and a member of the MUDA board, although he was not present at the specific meeting where the de-notification was discussed.
What ED’s report revealed
The ED’s report revealed that the land de-notification process was carried out without proper review or expert consultation. In one of the most alarming findings, officials tampered with official records to facilitate these actions. They misused political influence and engaged in forgery to illegally convert land and allot prime locations to certain individuals.
A key aspect of the scam involves the illegal allotment of 14 prime-location sites to Siddaramaiah’s wife, BM Parvathi. These sites were allocated in violation of the statutory guidelines. Parvathi was granted these plots through alleged political influence, but the allotments were returned to MUDA after the ED began its investigation.
The ED report suggested that the entire process — from de-notification to site allocation — was part of a well-planned scheme to acquire valuable land within MUDA-developed areas.
Additionally, the ED’s findings point to fraudulent activities by revenue department officials. The officials allegedly claimed to have conducted spot inspections of the land, but these reports were later found to be falsified. They omitted critical details, such as the fact that MUDA had already undertaken development work on the land and misrepresented the presence of unauthorized constructions. Satellite images and official records contradict these fabricated claims, suggesting that the land was tampered with for personal gain.
Probe highlights role of Siddaramaiah’s son
The investigation also highlighted the role of Siddaramaiah’s son, Yathindra, who was an MLA and a member of the MUDA board at the time of the site allotments. Yathindra is accused of being involved in the scheme, and the ED has raised questions about his influence over the land allocation process. Siddaramaiah’s close aide, SG Dinesh Kumar (also known as CT Kumar), has been accused of forgery and manipulating the site allotments in favor of Parvathi.
One of the most controversial elements of the case is the role of BM Mallikarjuna Swamy, who is believed to have played a significant part in the illegal land transactions. An indemnity bond that was submitted by Swamy in relation to the case was found to be suspicious because it lacked his signature, raising concerns about potential document manipulation.
The ED confirmed that violations were committed under Prevention of Money Laundering Act (PMLA), 2002. The investigation involves multiple parties, including Siddaramaiah, BM Parvathi, BM Mallikarjuna Swamy, J Devaraju, and several unidentified MUDA officials. The report suggests that the fraud was not only limited to land de-notification but also extended to other illegal land transactions and site allotments.
Despite Parvathi returning the allotted sites to MUDA on October 1, 2024, the ED maintains that the offence of money laundering was committed under Section 3 of the PMLA. The ED has already pointed to the involvement of political figures and MUDA officials, especially the then-Commissioner of MUDA, DB Natesh, who allegedly colluded with these people to manipulate land records and allotments.
