ED nabs ex-Mysuru development authority official in illegal site allotment case

The Enforcement Directorate has arrested former Mysuru Urban Development Authority (MUDA) commissioner Dinesh Kumar under the anti-money laundering law in connection with the alleged irregularities in site allotments, officials said on Wednesday.

Kumar, who was questioned after searches at his Bengaluru residences on Tuesday, was taken into custody and will be produced before a special Prevention of Money Laundering Act (PMLA) court in Bengaluru, where the agency is expected to seek his remand.

The ED has alleged that during his tenure as MUDA commissioner, Kumar indulged in “large-scale illegal allotments” of sites in return for “gratification and pecuniary benefits”, and was actively involved in laundering the proceeds. He was suspended by the Karnataka Government last year, following an internal probe into MUDA’s functioning.

The case relates to alleged irregularities in land allotted to Parvathi, the wife of Karnataka Chief Minister Siddaramaiah. However, both the Supreme Court and a state-appointed Justice PN Desai Commission have exonerated Siddaramaiah and his family.

In July, the apex court upheld a Karnataka High Court order quashing ED proceedings against Parvathi and also struck down summons issued to Urban Development Minister BS Suresh.

Earlier, the Lokayukta police also gave a clean chit to Siddaramaiah, Parvathi and two others, citing lack of evidence. The dispute stems from MUDA’s policy of compensating land losers with developed sites, under which Parvathi received 14 plots in Mysuru in exchange for 3.16 acres acquired at Kesare village. Siddaramaiah has maintained that the allotment was a lawful compensation for his wife’s land.