The Enforcement Directorate (ED) announced on Monday that it attached assets worth ₹40 crore as part of its investigation into a money laundering scandal linked to the Karnataka Urban Development Authority (MUDA). This marked a significant escalation in the ongoing probe.
The agency issued a provisional attachment order for 34 immovable properties, including several sites owned by MUDA, on October 4 under the Prevention of Money Laundering Act (PMLA). The total market value of these assets stands at approximately ₹40.08 crore.
This latest action increased the total value of attached properties to a staggering ₹400 crore. The money laundering investigation began after an FIR filed by the Karnataka Lokayuktha Police.
Former MUDA Commissioner GT Dinesh Kumar remains in judicial custody following his arrest by the ED in September. Investigators have discovered evidence suggesting that Kumar received “undue gratification” that he allegedly laundered through various means.
“Such proceeds of crime were used for purchasing immovable properties in the name of relatives and associates of GT Dinesh Kumar,” a statement from the ED revealed. “Further investigation also uncovered illegal allotment of 31 MUDA sites by Kumar.”
The ED’s investigation highlights a troubling “deep nexus” between MUDA officials and real estate developers. The agency claims to have found substantial evidence of cash payments associated with site allotments, compensation, and layout approvals.
This case has drawn additional scrutiny due to alleged irregularities involving land allotment to Parvathi, the wife of Karnataka Chief Minister Siddaramaiah. Despite the controversy, the Supreme Court upheld a Karnataka High Court order in July 2024, quashing the ED proceedings against her.
The state government appointed the Justice P.N. Desai Commission to look into the allegations, which ultimately exonerated Siddaramaiah and his family. The Lokayuktha Police also cleared the CM, his wife, and two others of any wrongdoing, citing a strong lack of evidence.
The ongoing investigation by the ED continues to reveal complexities within the MUDA money laundering case, which has become one of the state’s most talked-about scandals.
