ED undertakes fresh searches in money laundering case involving MUDA

The Enforcement Directorate undertook fresh searches on Monday in connection with the money laundering case involving the Mysuru Urban Development Authority in which it has booked Karnataka Chief Minister Siddaramaiah, his family and others, official sources said.

About seven to eight premises in Bengaluru and Mysuru are being covered in the search, the sources said. This includes the premises of a builder in Bengaluru and some linked persons.

The federal agency conducted the first round of raids in this case on October 18 when it searched the Mysuru Urban Development Authority (MUDA) office in Mysuru and some other locations.

It also questioned some lower-rank officials of the MUDA at its Bengaluru zonal office last week.

 

Taking cognisance of a Lokayukta FIR, the ED has filed an enforcement case information report (ECIR) under the Prevention of Money Laundering Act (PMLA) to book the Karnataka chief minister and others.

Siddaramaiah is facing Lokayukta and ED probes into alleged irregularities in the allotment of 14 sites to his wife by the MUDA.

Siddaramaiah's wife Parvathi B M, brother-in-law Mallikarjuna Swamy, Devaraju -- from whom Mallikarjuna Swamy purchased land and gifted it to Parvathi -- and others are named as other accused in the case by two probe agencies.

Parvathi was recently questioned by the Lokayukta Police in Mysuru.

It is alleged that 14 compensatory sites were allotted to Parvathi in an upmarket area in Mysuru (Vijayanagar Layout third and fourth 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.

It is alleged that Parvathi had no legal title over this 3.16 acres of land at survey number 464 of Kasare village, Kasaba Hobli of Mysuru taluk.

After the controversy broke out, Parvathi announced that she was returning the allotted plots to MUDA.

The chief minister had denied any wrongdoing by him or his family, saying the opposition was "scared" of him and had noted that it was the first such "political case" against him.