MUDA Scam: ED Attaches 92 Properties Valued at ₹100 Crore

NEW DELHI: The Enforcement Directorate (ED) has provisionally attached 92 properties, with a cumulative market value of ₹100 crore, in connection with a massive scam involving the allocation of sites by the Mysore Urban Development Authority (MUDA). Officials stated on Tuesday that the scam allegedly involves Karnataka Chief Minister Siddaramaiah.

According to the ED, the attached properties are held in the names of individuals and housing cooperative societies that allegedly serve as fronts or proxies for influential persons, including officials from MUDA. This latest action adds to the previously attached 160 MUDA sites, which were valued at around ₹300 crore, bringing the total value of provisionally attached properties in the case to approximately ₹400 crore.

The ED stated, “The 92 MUDA sites attached are in continuation of the earlier attachment of 160 sites.” The investigation was initiated based on an FIR filed by the Lokayukta Police in Mysore. The FIR, registered under various sections of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988, named Siddaramaiah—currently the Chief Minister of Karnataka—and others as accused.

According to an official statement from the agency, the attachment was carried out on Monday. The ED’s probe has uncovered a large-scale scam in the allocation of MUDA sites, revealing violations of multiple government statutes, directives, and procedures. Fraudulent methods were reportedly used to carry out these illegal allotments.

The agency highlighted the role of former MUDA commissioners, particularly GT Dinesh Kumar, whose involvement was deemed instrumental in the illegal distribution of compensation sites to ineligible parties. The ED claims to have collected evidence indicating bribes were paid in various forms—cash, bank transfers, and both movable and immovable assets—as kickbacks for these unlawful allotments.

The ED further outlined the modus operandi, revealing that allotments were granted using forged or incomplete documents and in blatant disregard of official government orders. In several cases, the allotment letters were even backdated to give the appearance of legitimacy.

The ED also stated that bribe money received in exchange for these illicit allocations was funneled through cooperative societies and bank accounts linked to relatives or associates of the involved officers. These funds were later used to acquire some of the illegally allotted MUDA sites, often in the names of those same relatives or associates of MUDA officials.a