The Enforcement Directorate (ED) arrested former Mysore Urban Development Authority Commissioner G T Dinesh Kumar in connection with the alleged MUDA scam early Wednesday, a day after conducting searches at the two residential premises connected to him in Bengaluru.
Probe has revealed that Kumar, during his tenure as MUDA commissioner, has indulged in large-scale illegal allotment of MUDA sites in lieu of gratification and peculiar benefits. The investigation till now has revealed his active involvement in money laundering activities,” a source said, adding that further investigation is in progress, and the agency is likely to produce him in a Prevention of Money Laundering Act (PMLA) court.
In June, ED provisionally attached 92 immovable properties in Mysuru, with a market value of Rs 100 crore – the MUDA sites under the provisions of the PMLA, stating that the properties were registered in the name of entities such as individuals and housing cooperative societies serving as fronts or dummies for influential people, including MUDA officials.
The central agency initiated an investigation based on a First Information Report (FIR) registered by the Lokayukta police in Mysuru under various sections of the Indian Penal Code (IPC), and the Prevention of Corruption Act against Karnataka Chief Minister Siddaramaiah and others.
“The investigation revealed a large-scale scam in allotment of MUDA sites by flouting various statutes and government orders/ guidelines and by other fraudulent means,” ED had said in a statement.
The central agency had also said that the role of ex-MUDA commissioners, including G T Dinesh Kumar, has emerged as “instrumental in illegal allotment of compensation sites to ineligible entities/individuals”. “The evidence, with respect to obtaining bribes for making illegal allotments in the form of cash, bank transfer, movable or immovable properties, has been gathered during the investigation,” ED said.
According to the agency, the modus operandi for making illegal allotments involved the identification of ineligible beneficiaries and making allotments using fake or incomplete documents in direct violation of government orders and also backdating of allotment letters in some cases.
