283 MUDA sites worth Rs. 460 cr. seized so far in expanding probe

Mysore/Mysuru: The Directorate of Enforcement (ED), Bengaluru Zonal Office, has provisionally attached assets worth several crores belonging to former MUDA Chairman K. Marigowda, a close aide of Chief Minister Siddaramaiah, in connection with the illegal site allotment scam involving the Mysuru Urban Development Authority (MUDA), now the Mysuru Development Authority (MDA).

Investigations have confirmed Marigowda’s direct involvement in the scam, with evidence indicating that he illegally obtained multiple sites. Accordingly, the ED has attached six illegally allotted MUDA sites and 10 immovable properties valued at Rs. 20.85 crore, including a large commercial building, according to an ED press release issued last night. The action was taken under Prevention of Money Laundering Act (PMLA), 2002.

The ED has alleged that Marigowda acquired the sites with the assistance of ex-MUDA Commissioner G.T. Dinesh Kumar. The probe revealed that the allotments were made in complete violation of legal provisions and guidelines and that Dinesh indirectly facilitated Marigowda’s illegal acquisitions.

ED investigation revealed that site allotments were carried out in blatant violation of the Karnataka Urban Development Authority (Allotment of Sites in Lieu of Compensation for Acquired Land) Rules, 2009, as amended in 2015 and Karnataka Urban Development Authority (Incentive Scheme for Voluntary Surrender of Land) Rules, 1991.

Marigowda has appeared before ED officials on multiple occasions and has provided explanations during questioning.

FIR by Lokayukta

The ED initiated its probe based on an FIR filed by the Lokayukta Police, Mysuru, which uncovered large-scale irregularities in site allotments by MUDA. Searches conducted in October 2024 revealed violations, along with evidence of cash payments for site allotments and layout approvals.

So far, the ED has attached properties worth over Rs. 460 crore in different phases of the investigation. This includes 283 MUDA sites and three personal properties that were previously attached. The probe also covers allegations of illegal site allotments made to Chief Minister Siddaramaiah’s wife, B.M. Parvathi.

A deep nexus between MUDA officials and real estate businessmen came to light following the arrest of Dinesh Kumar in September 2025. He remains in judicial custody.

Investigators found that the proceeds of crime were used to acquire properties and construct a commercial building through relatives and associates.

The ED’s crackdown has sent shockwaves among beneficiaries of irregular MUDA allotments, as the investigation continues to widen.