ED detects deceptive processes, political influence, bypassing rules, omission of essential documents

Bengaluru: In its recent letter to the Karnataka Lokayukta regarding the transfer of 14 sites by MUDA to B.M. Parvathi, wife of CM Siddaramaiah, the Enforcement Directorate (ED) has highlighted significant illegalities even before the sale of the 3.16-acre land in Survey Number 464, Kesare village.

The ED is probing money laundering allegations involving Siddaramaiah, Parvathi, CM’s brother-in-law B.M. Mallikarjunaswamy and J. Devaraju, who sold the land in question to Mallikarjunaswamy.

This land was later gifted to Parvathi, who then secured 14 compensatory sites from MUDA in the Vijayanagar Third and Fourth Stages under the controversial 50:50 scheme.

The ED’s letter revealed that the denotification of land for non-agricultural purposes was carried out without adequate justification, expert analysis, or a thorough review of records. Despite these shortcomings, the process proceeded without any proper deliberation.

The denotification process was initiated after J. Devaraju submitted an application to the then Urban Development Minister B.N. Bache Gowda, bypassing the proper procedure of applying directly to MUDA.

Additionally, the denotification was processed without the required documentation. The ED highlighted that essential documents, including a death certificate, legal heir certificate, family tree, and consent from family members, were not obtained.

The ED noted that the preliminary notification for the land (survey number 464) was issued on Sept. 18, 1992, with the final notification following on Aug. 20, 1997.

These notifications listed Ninga alias Jawra as the landowner, but he had passed away. His son, J. Devaraju, sold the land to Mallikarjunaswamy in 2004. Mallikarjunaswamy subsequently transferred (in gift form) the property to his sister Parvathi, the wife of CM Siddaramaiah, in 2010.

The ED also pointed out that Devaraju’s claim of being dependent on the land in his denotification request was false, as he was a State Government employee. Based on Devaraju’s application, then Minister Bachegowda, who reviewed the petition, wrote a note to his Principal Secretary. Based on this note, a letter was sent to MUDA.

On 24.07.1997, MUDA passed a resolution to exclude this land from land acquisition. On 30.08.1997 the Commissioner of MUDA recommended to the Secretary to Government to release the said lands from land acquisition. The ED also clarified that the MUDA board discussed the denotification, as recorded in the meeting minutes of 24.07.1997.

Siddaramaiah was on MUDA Board

Additionally, the ED highlighted that at the time of the denotification, Siddaramaiah was serving as the Deputy CM, an MLA from Chamundeshwari, and a member of the MUDA Board. However, he did not attend the meeting where the denotification was discussed, the ED stated in its letter.

In a sale deed dated Aug. 25, 2004, Devaraju sold the land (survey number 464) to Mallikarjunaswamy for Rs. 5.95 lakh, describing it as agricultural land.

Mallikarjunaswamy told the ED that he visited the land with Devaraju during 2003-04 and found no development. However, the ED’s investigation revealed that MUDA had started developing the land in 2001 and began allotting sites by 2003, and this has been confirmed by satellite imagery of the land found in MUDA records.

Neither Devaraju nor Mallikarjuna Swamy could explain this discrepancy when questioned, the ED noted in its letter.

Forming of sites in ‘agri’ land

The ED reported that 25 sites were created on the land, with 20 sites registered. Four allottees failed to make payments, and one filed a lawsuit. The remaining five sites were designated as commercial properties under MUDA’s control.

Additionally, the ED revealed that a work order for developing the layout was issued to Larsen & Toubro on May 15, 2001, for Rs. 11.68 crore, which was completed by May 17, 2003. Payments were made in 16 instalments between 2001 and 2004. Despite these developments, the land was sold as ‘agricultural land.’

The ED also found that, despite the development and site allotments, neither Devaraju nor Mallikarjunaswamy raised objections or sought compensation.

The agency concluded that the land sale was a fraudulent transaction, engineered on paper. The land was unlawfully converted into residential property based on inaccurate spot inspection reports, with no objections from MUDA.

The ED claimed that illegal compensation in the form of 14 prime sites in Vijayanagar Thid and Fourth Stages worth around Rs. 56 crore was obtained through political influence.