ED Arrests Retired KIADB Officer and Land Broker in Rs. 72 Crore Fraud Scheme

The Enforcement Directorate (ED) has arrested Vasantkumar Durgappa Sajjan, a retired KIADB officer, and land broker Maibub Allabuksh Dundasi in a Rs. 72 crore fraud case. The duo allegedly conspired to make double payments as compensation for land acquisition, causing significant losses to the government. Investigations reveal extensive money laundering through shell accounts.

The Enforcement Directorate (ED) in Bengaluru has arrested Vasantkumar Durgappa Sajjan, a retired Special Land Acquisition Officer of the Karnataka Industrial Area Development Board (KIADB), and land broker Maibub Allabuksh Dundasi under the Prevention of Money Laundering Act (PMLA), 2002. This is part of an ongoing probe into a fraudulent double payment scheme involving KIADB, which saw Rs. 72 crore disbursed improperly.

The investigation began after the Vidyagiri Police Station in Dharwad registered an FIR against Sajjan and others under various sections of the Indian Penal Code (IPC), 1860. The case was later transferred to the Criminal Investigation Department (CID), Dharwad, which has since filed a chargesheet.

The FIR and chargesheet allege that Sajjan and other KIADB officials colluded with land brokers and other accused, sanctioning payments totaling Rs. 19.99 crore to seven individuals as compensation for land acquisition, despite these individuals having already received compensation. This resulted in significant losses to the government.

Money was fraudulently withdrawn from KIADB during 2021-22, while the original compensation payments were made between 2010-12. The ED's investigation revealed the actual fraudulent payments reached approximately Rs. 72 crore, transferred to bank accounts opened with fake identities and laundered through shell accounts. The funds were used to purchase properties, vehicles, and other assets.

On August 9 and 10, 2024, the ED conducted search operations at 12 locations in Karnataka, seizing Rs. 1.50 crore in cash and uncovering significant evidence of the scam. The searches revealed double payments far exceeding the FIR amount.

(With inputs from agencies.)