Revenue loss for both Department of Stamps & Registration and Income Tax Department: RTI activist Gangaraju

Mysuru: Various aspects of land deal corruption within the MUDA are already in the public domain. The Enforcement Directorate (ED), Mysuru Lokayukta, and the One-Man Judicial Commission headed by Justice P.N. Desai are currently investigating the modus operandi of these scams that have caused a loss of thousands of crores of rupees to the State Exchequer. .

In a fresh charge against MUDA officers, RTI activist Gangaraju has said that by exploiting ‘Settlement Deeds,’ MUDA sites are being sold without paying the required stamp duties, registration fees or income tax — resulting in large-scale fraud.

Gangaraju has exposed this scandal, providing supporting documents and has also released a video revealing financial transactions where lakhs of rupees were collected under the pretence of ‘Settlement Deeds.’

According to Gangaraju, a 60×40 site in Vijayanagar 4th Stage, 2nd Phase, Mysuru, acquired under the contentious 50:50 scheme from MUDA, was sold by N. Manjunath, developer of Karthik Layout, to one S. Shivanna through a ‘Settlement Deed.’

Gangaraju alleged that Manjunath received Rs. 25 lakh from Shivanna during this transaction, supported by a video he has released. The ‘Settlement Deed’ record, however, does not specify the site’s sale price; while the registration fee was paid to the Sub-Registrar’s Office, the actual sale amount was left unreported, defrauding the Department of Stamps and Registration.

Furthermore, Gangaraju asserted that income tax was also evaded, resulting in fraud against the Government. He claimed that although a financial transaction took place, the ‘Settlement Deed’ was used deliberately to deceive both the Department of Stamps and Registration and the Income Tax Department.

According to Gangaraju, hundreds of similar cases exist within MUDA, with this serving as a clear example.

“The ED has issued me a notice to participate in the investigation, requiring all relevant documents. I will be submitting a statement along with records regarding this matter and other scandals involving MUDA,” stated Gangaraju.

He further noted that if the Central Bureau of Investigation (CBI) joins the ED in investigating the MUDA scams, numerous additional irregularities are likely to come to light.

The Government has introduced stringent measures to curb the evasion of stamp duty and income tax. However, many unscrupulous individuals are circumventing these obligations under the pretence of ‘Settlement Deeds,’ effectively deceiving the Government.

While efforts are being made to close loopholes, fraudsters continue to exploit these vulnerabilities. The ED is currently conducting a thorough investigation into such scandals within MUDA, and it remains to be seen who will ultimately face the consequences.