• Ex-MUDA Commissioner’s 34 sites seized by ED
• Total value of seized assets so far crosses Rs. 440 cr.

Bengaluru: In a major development in the Mysuru Urban Development Authority (MUDA) scam, the Enforcement Directorate (ED) has provisionally attached 34 immovable properties valued at around Rs. 40.08 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

ED’s Bengaluru Zonal Office attached these properties on Oct. 4, as part of an ongoing money-laundering probe into large-scale irregularities in site allotments by MUDA officials. MUDA has now been rebranded as the Mysuru Development Authority (MDA).

Earlier, the probe agency had attached 252 illegal MUDA sites worth Rs. 400 crore, bringing the total value of seized assets in the case to over Rs. 440 crore.

The ED initiated its investigation based on an FIR filed by the Mysuru Lokayukta Police, which alleged massive corruption in the allotment of MUDA sites.

Hefty bribes, illegal allotments

The probe revealed that former MUDA Commissioner G.T. Dinesh Kumar allegedly accepted hefty bribes in exchange for illegal site allotments and diverted the proceeds to purchase properties in the names of his relatives and associates.

According to officials, Dinesh Kumar allegedly allotted 31 sites in violation of government directives and the Karnataka Urban Development Authority rules. An ED investigation revealed the routing and layering of undue gratification that he obtained.

“Such proceeds of crime were used for purchasing immovable properties in the names of relatives and associates of Dinesh Kumar. Further investigation also revealed illegal allotment of 31 MUDA sites by Dinesh Kumar,” the ED stated.

The probe agency conducted searches on Oct. 18 and Oct. 28, 2024, at multiple locations, uncovering evidence of cash transactions and unapproved layouts linked to the scam.

Gross violation of rules

Investigations revealed that the sites were allotted in gross violation of the letter dated March 14, 2023, the Government order dated Oct. 27, 2023, Karnataka Urban Development Authorities (Allotment of sites in lieu of compensation for the land Acquired) Rules, 2009 as amended in 2015, and Karnataka Urban Development Authority (Incentive Scheme for Voluntary Surrender of Land) Rules, 1991.

Investigators have also unearthed a strong nexus between MUDA officials and real estate operators, pointing to a systematic network of bribery and site manipulation. “Evidence also revealed payment of cash for allotment of sites as compensation and approval of layouts,” the ED said.

The key accused, Dinesh Kumar, was arrested on Sept. 16, 2025 and remains in judicial custody. The probe agency stated that its investigation into the MUDA scam and related money-laundering activities is still underway.