Karnataka: ED conducts fresh searches in MUDA money laundering case

The Enforcement Directorate undertook fresh searches on October 28 in connection with the money laundering case involving the Mysuru Urban Development Authority (MUDA) in which it has booked Karnataka Chief Minister Siddaramaiah, his family and others, official sources said.

Seven to eight premises in Bengaluru and Mysuru are being covered in the searches, the sources said.

This includes the premises of a builder in Bengaluru.

ED conducted the first round of raids on October 18 when it searched the MUDA office in Mysuru and some other locations.

Last week, it questioned some lower-rank officials of the MUDA at its Bengaluru zonal office.

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

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

His wife Parvathi B.

M.

, brother-in-law Mallikarjuna Swamy, Devaraju — from whom Mallikarjuna Swamy purchased land and gifted to Parvathi — and others are named as other accused in the case by the two probe agencies.

Ms Parvathi was recently questioned by the Lokayukta police in Mysuru.

It is alleged that 14 compensatory sites were allotted to Ms 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 that had been ‘acquired’ by MUDA.

The MUDA had allotted plots to Ms Parvathi under a 50:50 ratio scheme in lieu of 3.

16 acres of her land where it had developed a residential layout.

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

It is alleged that Ms Parvathi had no legal title over the 3.

16 acres in survey number 464 of Kasare village, Kasaba hobli of Mysuru taluk.

After the controversy broke out, Ms 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.

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