Enforcement Directorate wraps up raid on city realtor after 52 hours

Mysuru: Expanding its investigation into the multi-crore 50:50 site allotment scam involving the Mysuru Urban Development Authority (MUDA), the Enforcement Directorate (ED) has wrapped up a 52-hour raid at M.M.G. Constructions Office on New Kantharaj Urs Road. The construction firm is owned by M.M.G. Jayaram.

Before leaving the premises with documents this morning, the ED sleuths locked the office and also the office of Vakrathunda Housing Cooperative Society, headed by Jayaram.

Interesting details have emerged out of the raid. Sources said that Jayaram was a mason just a decade ago. He has transformed into a millionaire, reportedly accumulating his wealth through MUDA’s controversial 50:50 site deals.

Hailing from H.D. Kote in Mysuru, Jayaram leveraged his connections with contractors to elevate his status.

Over time, he fostered relationships with MUDA officials, quickly rising to prominence. Today, his name is synonymous with nearly every 50:50 land deal in the region.

Allegedly, Jayaram has established close ties with former MUDA Commissioners Dr. D.B. Natesh and G.T. Dinesh Kumar, with the 50:50 site sales becoming his main business focus. The Enforcement Directorate (ED) is now scrutinising his financial transactions, though it remains uncertain which politicians and officials connected to Jayaram may be implicated in this unfolding scam.

Sources indicate that Jayaram acted as a middleman for influential politicians and officials throughout Karnataka, including key figures in Mysuru and Bengaluru. This raid, conducted based on information gathered by the ED, aims to explore  these alleged connections.

Additionally, Jayaram managed the Vakrathunda Housing Cooperative Society, where he held full authority. The 50:50 site transactions, sanctioned by former MUDA Commissioner G.T. Dinesh Kumar, reportedly involved Jayaram as a middleman, with Dinesh Kumar believed to have funnelled dubious dealings through him.

Many politicians and officials allegedly acquired 50:50 MUDA sites through Jayaram’s contacts, subsequently selling them for substantial profits. As Jayaram’s connections come under scrutiny, the ED probe suggests that further raids could target several politicians and officials linked to these questionable land deals.

Buyers anxious

With the Enforcement Directorate (ED) raiding M.M.G. Constructions, anxiety has surged among buyers who acquired MUDA’s 50:50 sites through Jayaram. As news of the raid spread, many buyers gathered outside his office, visibly tense and seeking information about the unfolding situation.

Numerous individuals were seen stopping by, questioning those nearby before leaving with evident concern. One buyer, speaking with journalists, revealed, “A friend who purchased a site from Jayaram asked me to come check on what’s happening here after hearing about the ED raid.”

Sites bought through settlement deeds

Many of these sites were reportedly bought through settlement deeds, allowing buyers to evade income tax and stamp duty, thereby defrauding the Government. As the ED investigation intensifies, buyers are increasingly worried that they may become embroiled in a broader inquiry.

I have just got five sites under 50:50 ratio: Jayaram

I have provided all the information and documents requested by the ED officials. Over the past several years, I have constructed thousands of houses and allocated numerous sites. I received five sites under the 50:50 ratio from the Catholic Society and I have submitted details regarding this as well. The Vakrathunda Cooperative Society is public and I serve as a decision-maker within it. This society belongs to us.

I came to Mysuru as a mason and have worked my way up to this level. I have no connection with former MUDA Commissioner G.T. Dinesh Kumar. He only visited for layout work in his capacity as MUDA Commissioner.

Additionally, Dinesh Kumar’s brother-in-law, Tejas Gowda, has not engaged in any dealings with us and I do not have much information about him. If the ED summons me again in the future, I will gladly attend the inquiry.”

— M.M.G. Jayaram, Proprietor, M.M.G. Constructions LLP