ED Cracks Down on MUDA Scam: Properties Worth Rs 300 Crore Seized

The Enforcement Directorate has seized 142 properties valued at Rs 300 crore in the MUDA case involving Karnataka Chief Minister Siddaramaiah. Allegations suggest political manipulation to secure lucrative compensation sites. Investigations reveal extensive money laundering linked to illegal real estate dealings, implicating various officials and businessmen.

The Enforcement Directorate (ED) has taken significant action in the Machilipatnam Urban Development Authority (MUDA) case by attaching 142 immovable assets worth Rs 300 crore. These properties, associated with Karnataka Chief Minister Siddaramaiah and others, were seized under the Prevention of Money Laundering Act (PMLA), 2002, by ED's Bangalore Zonal Office.

According to the ED, the properties are registered under the names of various real estate businessmen and agents. The investigation commenced following a First Information Report filed by the Lokayuktha Police Mysore, citing multiple sections of the Indian Penal Code and the Prevention of Corruption Act against Siddaramaiah and other involved parties.

Allegations state that Siddaramaiah leveraged his political influence to secure compensation of 14 prime sites for his wife BM Parvathi, in exchange for land initially valued at Rs 3,24,700. The sites, now valued at Rs 56 crore, were part of an orchestrated misuse of MUDA resources, with former MUDA commissioner DB Natesh playing a key role. Further ED probes uncovered illegal allotments by MUDA to realtors who profited substantially, laundering money through purported legitimate channels. The investigation also uncovered that profits were funneled through a co-operative society for lavish purchases under aliases associated with influential figures.

(With inputs from agencies.)