Bengaluru, Sep 18 (IANS) The Bengaluru Zonal Office of the Enforcement Directorate (ED) said on Thursday that the investigation into the Mysuru Urban Development Authority (MUDA) case has revealed a large scale scam in allotment of MUDA sites, according to an official ED statement.

The ED has already attached 252 illegally allotted MUDA sites so far, having a market value of nearly Rs 400 crore.

The statement also said that the ED investigation revealed a large scale scam in allotment of MUDA sites by flouting various statutes and government orders/guidelines and by other fraudulent means.

The ED has arrested former MUDA Commissioner G.T. Dinesh Kumar on September 16 in connection with illegal MUDA sites allotment scam.

Karnataka Chief Minister Siddaramaiah is the accused number one in the case.

He was produced before the Special Court for trial of MPs/MLAs cases at Bengaluru on September 17.

The court had remanded CM Siddaramaiah to ED custody for nine days till September 26.

The role of former MUDA commissioner Dinesh Kumar has emerged as instrumental in illegal allotment of compensation sites to ineligible entities/individuals, the ED said.

The evidences with respect to obtaining bribe for making illegal allotments in the form of cash, bank transfer, movable/immovable properties have been gathered during the course of the investigation, the ED added.

The evidences and documents collected during the course of investigation in this case has indicated active involvement of Dinesh Kumar in the comprehensive money laundering scheme perpetrated at MUDA in Mysuru during his tenure as its Commissioner, the statement said.

ED initiated investigation on the basis of FIR registered by the Lokayukta Police on the allegations of large scale illegal allotment of MUDA sites.

The modus operandi for making illegal allotment involved identification of ineligible beneficiaries and making allotment using fake documents/incomplete documents in direct violation of government orders and also backdating of allotment letters in some cases.

The gratification received for making these illegal allotments was routed through a co-operative society and bank accounts of the relatives/associates of Dinesh Kumar, who has played a key role in the allotment process.

The gratification, thus received, was further used to purchase some of these illegally allotted MUDA sites in the name of relatives of Dinesh Kumar.

Further investigation is underway.

–IANS

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