CM Siddaramaiah calls ED's move in Muda case politically motivated

Karnataka Chief Minister Siddaramaiah on Wednesday termed the ED's recent communication to the state Lokayukta police in connection with the MUDA site allotment case, as "politically motivated" and sent with an intent to influence them and the court.

He repeatedly asserted that the Enforcement Directorate (ED) has no powers to investigate the case.

Siddaramaiah is facing allegations of illegalities in the allotment of 14 sites to his wife Parvathi B M by the Mysuru Urban Development Authority (MUDA).

"It is politically motivated. Tomorrow our writ appeal against the single bench order is coming up (before division bench in HC), if they have done it just ahead of it, what does it mean? First of all they (ED) dont have any powers to investigate, they cannot do it legally. Secondly, they have done this to influence the court," he said in response to a question on ED's letter to Lokayukta.

Addressing reporters here, the CM said, "The Lokayukta is conducting the inquiry and they will have to submit a report. This has been done to influence them, to make them prejudicial. This is politically motivated and out of political malice."  According to the ED, evidence of several irregularities has been detected in the transfer of 14 sites by the MUDA to Parvathi.

The federal agency, in a recent communication sent to the Lokayukta police, claimed that its probe has also found that MUDA had "illegally" allotted a total of 1,095 sites in benami and other such transactions.

The alleged illegal activities at MUDA "did not end" with the case of Parvathi as a total of 1,095 sites, with a market value of more than Rs 700 crore, were "illegally" allotted, according to an investigation report accessed by PTI and information from official sources.

Reiterating that the ED has no powers to investigate the case, but still they are probing, the CM said, "The Governor had asked to investigate, the district court (special court) told Lokayukta police to investigate and submit a report by December 24. They (Lokayukta police) are investigating, but why are they (ED) writing a letter? What is their intention? Isn't it deliberate?"  "... there is no truth in it (the case). They (ED) are investigating the case, let them give the report independently? Why have they written a letter (to Lokayukta)? They may share the information, but it doesn't mean that they should write a letter and it should be released to the media," he said, adding that the intention is "totally, hundred per cent political."  Siddaramaiah, his wife, brother-in-law Mallikarjuna Swamy and Devaraju -- from whom Swamy had purchased a land and gifted it to Parvathi -- and others have been named in the FIR registered by the Mysuru-located Lokayukta police establishment on September 27, following the Special Court order.

On September 30, the ED filed an enforcement case information report (ECIR) to book the CM and others taking cognisance of the Lokayukta FIR, and is also probing the case.

In the MUDA site allotment case, it is alleged that 14 compensatory sites were allotted to Siddaramaiah's wife in an upmarket area in Mysuru (Vijayanagar Layout 3rd and 4th stages), which had higher property value as compared to the location of her land which had been "acquired" by MUDA.

The MUDA had allotted plots to Parvathi under a 50:50 ratio scheme in lieu of 3.16 acres of her land, where it developed a residential layout.

Under the controversial scheme, MUDA allotted 50 per cent of developed land to the land losers in lieu of undeveloped land acquired from them for forming residential layouts.

However, as the site allocation triggered a controversy, Parvathi wrote to MUDA asking it to cancel 14 sites allotted to her and the MUDA had accepted it.