Muda scam-related press release by ED ‘politically motivated’: Siddaramaiah
Karnataka Chief Minister Siddaramaiah has called the press release issued by the Enforcement Directorate (ED) regarding the Mysuru Urban Development Authority (MUDA) scam “politically motivated.”
Siddaramaiah, who is accused number one in the MUDA case, stated that there is no connection between him and the press statement released by the ED. His wife, B.M. Parvathi, is the second accused in the case.
Speaking to the media on Monday at the Vidhana Soudha in Bengaluru, the Chief Minister said that the BJP had unnecessarily released the press statement through the ED.
He further denied allegations regarding the misuse of state funds in the MUDA and Valmiki Corporation scams, as well as accusations about holding a national convention event in Belagavi using state tax money. He asserted that there was no misuse of funds.
In response to the increasing microfinance scams in the rural areas of Mysuru and Chamarajanagar districts and the harassment faced by people, Siddaramaiah assured that legal action would be taken against the institutions involved in such scams.
He also mentioned that a public meeting would be held to commemorate the centenary of the 1924 Belagavi Congress Session, following the unveiling of a Mahatma Gandhi statue.
In a setback for Siddaramaiah, the Enforcement Directorate (ED), Bangalore Zonal Office, attached 142 immovable properties worth approximately Rs 300 crore under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the MUDA scam.
The ED stated that the role of ex-MUDA commissioner D.B. Natesh was key in the illegal allotment of compensation sites to Chief Minister Siddaramaiah’s wife, B.M. Parvathi. The ED’s investigation revealed that other sites were illegally allotted to real estate businessmen, who then sold these properties for large profits and generated unaccounted cash.
Petitioner Snehamayi Krishna alleged that the illegal allotments by MUDA amounted to thousands of crores of rupees. The ED found evidence of money being laundered and disguised as legitimate sources of income.
The attached properties are registered in the names of real-estate businessmen and agents, the ED said.
The investigation began based on an FIR filed by the Lokayuktha Police Mysuru under various sections of IPC, 1860, and the Prevention of Corruption Act, 1988 against Siddaramaiah and others.
It is alleged that Siddaramaiah used his political influence to secure compensation of 14 sites in the name of his wife, B.M. Parvathi, in exchange for 3 acres and 16 guntas of land acquired by MUDA. The land was initially acquired by MUDA for Rs 3.24 lakh, while the compensation in the form of 14 sites at the posh Vijayanagar locality in Mysuru is valued at approximately Rs 56 crore.
The ED’s investigation also revealed that money was routed through a cooperative society to purchase properties and luxury vehicles in the name of relatives of G.T. Dinesh Kumar, the former MUDA commissioner.
The investigation is ongoing.
Earlier, Chief Minister Siddaramaiah had rejected the allegations of illegal allotments, and his wife, Parvathi, had returned the 14 allotted sites to MUDA.
The Karnataka High Court has adjourned the hearing in the plea for a Central Bureau of Investigation (CBI) probe into the MUDA case to January 27.
Siddaramaiah is facing investigations by the Lokayukta and the Enforcement Directorate (ED) over the alleged illegal allotment of 14 MUDA sites to his family, and he has filed a petition seeking the quashing of proceedings against him.
