ED finds ‘clear preferential treatment’ in allotment of 14 sites to Siddaramaiah’s wife Parvathi

Bengaluru:  The Enforcement Directorate (ED) has informed the High Court in its interim investigation report that there was an attempt to launder money in the allotment of 14 sites by the Mysuru Urban Development Authority (MUDA).

The report names Chief Minister Siddaramaiah, his wife B.M. Parvathi, brother-in-law B.M. Mallikarjunaswamy, landowner J. Devaraju and others, alleging their collusion with former MUDA Commissioner Dr. D.B. Natesh.

The investigation has confirmed violations under the Prevention of Money Laundering Act (PMLA), 2002. The ED’s 104-page report includes 37 pieces of evidence, signed by Brij Shankar, Deputy Director, ED (Bengaluru). The report states that apart from the 14 sites allotted to Parvathi, approximately 1,095 sites were illegally sanctioned.

Provisional Attachment Order

Documents indicate that this is part of the Provisional Attachment Order (PAO) issued by the ED on Jan. 17, covering 142 sites, primarily owned by real estate agents. However, Parvathi returned the 14 sites to MUDA in 2024.

The ED asserts that the investigation has established an attempt at money laundering under Section 3 of the Prevention of Money Laundering Act, 2002, listing Siddaramaiah and Parvathi among the accused.

The report also reveals that Mallikarjunaswamy purchased 3.16 acres of land in Survey No. 464 of Kesare from J. Devaraju, despite MUDA having already created and allotted sites on the land. Despite this, he acquired it as agricultural land and MUDA officials remained silent without raising objections.

Subsequently, Mallikarjunaswamy illegally converted the land. Even though the conversion was based on a faulty inspection report, MUDA officials did not dispute it, the ED states.

MUDA had initially acquired the land for Rs. 3,24,700. However, using false information and influence, it was denotified. Parvathi was then allotted sites worth Rs. 56 crore as compensation for land valued at only Rs. 3.24 lakh.

Commissioner’s role

The report highlights the role of Natesh. During this period, Siddaramaiah was the Leader of the Opposition and H.G. Dinesh Kumar, also known as C.T. Kumar, was his close associate. Kumar wielded influence in the allotment of 14 sites and Natesh personally selected these sites and there was clear preferential treatment in the process, the ED said.

The ED probe has not established a direct role of Siddaramaiah but highlights that Siddaramaiah was either Deputy Chief Minister or Leader of the Opposition when key developments in the case took place.

The report states that Kumar influenced MUDA officials and forged signatures to ensure that sites were allotted to Parvathi. This was revealed during the interrogation of Natesh, the report said.

The ED also pointed to the involvement of Siddaramaiah’s son Dr. Yathindra Siddaramaiah, who was an MLA and a MUDA board member at the time of the site allotments.

Contravention of rules

In 2010, Mallikarjunaswamy gifted the land to his sister Parvathi, who later sought compensation from MUDA in 2014 for developing the land despite its denotification.

The ED concluded that the 14 sites allotted to Parvathi were “illegally sanctioned in contravention of statutory guidelines.”

The timing of B.M. Parvathi’s compensation request also raises suspicions, as it was submitted on June 4, 2014, shortly after Siddaramaiah assumed office as Chief Minister on May 13, 2013. The ED noted that the request letter contained alterations, including the use of a whitener to erase a sentence. “This implies tampering with evidence,” the agency stated.

The ED alleged a “deep-rooted nexus” between MUDA officials, real estate businessmen and influential individuals, enabling large-scale illegal allotments in exchange for cash, immovable properties and vehicles.

Apart from Parvathi, the Central agency named Abdul Wahid (41 sites), M. Ravikumar and others (31), Cathedral Parish Society (40) and members of Chamundeshwari Nagara Sarvodya Sangha (48), who “illegally” received the major allotment from 1,095 sites.