• Benami allotments and dummy land-losers
• One of Siddaramaiah’s personal assistants wielded ‘undue influence’ in site allotment process: ED

Bengaluru: The Enforcement Directorate (ED) has uncovered significant irregularities in the transfer of 14 sites by the Mysuru Urban Development Authority (MUDA) to B.M. Parvathi, wife of Chief Minister Siddaramaiah.

The ED is investigating money laundering allegations involving Siddaramaiah, Parvathi, CM’s brother-in-law B.M. Mallikarjuna Swamy and J. Devaraju, who sold 3.16 acres of land in Kesare (Sy. Number 464) to Mallikarjuna Swamy.

This land was later gifted to Parvathi, who secured 14 compensatory sites from MUDA in Vijayanagar Third and Fourth Stages under the controversial 50:50 scheme as MUDA did not follow land acquisition process at Kesare to form Devanur Layout. 

Violations and tampering detected

The federal investigation agency, in a recent communication to the Karnataka Lokayukta Department, claimed its probe revealed that MUDA had illegally allotted a total of 1,095 sites through benami and other fraudulent transactions.

There was a “contravention of statutory guidelines” in the land transfer to Parvathi, with evidence of tampering, violation of office procedures, undue favour and influence and forgery of signatures.

The agency also claimed to have found evidence that one of Siddaramaiah’s personal assistants, S.G. Dinesh Kumar, alias C.T. Kumar, wielded “undue influence” in the process.

Widespread corruption in MUDA

The alleged illegal activities at MUDA “did not end” with Parvathi’s case, as a total of 1,095 sites, valued at over Rs. 700 crore, were “illegally” allotted, according to the investigation report and official sources.

“Most of the allotments have been made in the name of benami or dummy persons in the guise of land losers. However, the beneficiaries of these illegal allotments are real estate businessmen and influential persons,” the Enforcement Directorate probe found.

The Enforcement Directorate (ED) informed the Lokayukta that its investigation under the Prevention of Money Laundering Act (PMLA) revealed the 14 sites allotted to Parvathi were done “illegally” in “contravention” of statutory guidelines on site allotment.

Forgery and influence

It further stated that evidence of tampering, procedural violations, undue favour and influence, forgery of signatures and evidence tampering is evident from the investigation.

The ED stated that when the allotment was made to Parvathi, her son Dr. Yathindra Siddaramaiah was the MLA of the Varuna Constituency and a member of the MUDA Board. Siddaramaiah was the Leader of Opposition during this time.

The de-notification process of the said land lacked “any reasoning, deliberation or analysis of records,” it noted. The probe revealed that the Chief Minister’s Personal Assistant, S.G. Dinesh Kumar alias C.T. Kumar, exerted “undue influence” within MUDA, forging signatures and manipulating the allotment process in Parvathi’s favour.

Contravention of statutory provisions

The sites were “illegally” de-notified based on “incorrect facts” and “under influence.” Subsequently, the land was purchased by Mallikarjuna Swamy as agricultural land, “despite the fact” that MUDA had already undertaken construction and allotted sites before Devaraju sold the land to Mallikarjuna Swamy, the ED said.

The agency emphasised that the “contravention” of statutory provisions for site allotment in Parvathi’s case was not an isolated incident. It highlighted a “deep-rooted nexus” among real estate businessmen, influential persons and MUDA officials to perpetrate this alleged land crime.

High-security bond papers missing

Searches conducted in the case uncovered that a “large number” (1,946 out of 5,000) of high-security bond papers, intended for issuing MUDA allotment letters, were “missing.” The ED alleged that Prashant Raju, a personal assistant to former MUDA Commissioner G.T. Dinesh Kumar, withdrew these papers despite having no official role in issuing allotment letters.

“Investigations indicate these high-security bond papers may have been used to issue fraudulent allotment letters by G.T. Dinesh Kumar,” the ED alleged.

Land conversion a sham

The agency informed the Lokayukta that the entire process for converting the 3.16 acres of land at Survey Number 464, Kesare, for non-agricultural purposes was a “sham” and not based on actual facts.

It pointed out that local revenue officials, including the Village Accountant, Surveyor, Revenue Inspector, Tahsildar and Deputy Commissioner conducted a spot inspection of the land but failed to report the construction work undertaken by MUDA at the site.

They falsely claimed that no unauthorised construction had been carried out, a statement contradicting the facts as seen in “satellite images” and MUDA records, the ED said.

The ED also noted that during the conversion proceedings, Siddaramaiah was the Deputy Chief Minister of Karnataka.

On application of whitener

The agency suspected “tampering of evidence,” revealing that a compensation letter submitted to MUDA by Parvathi on June 14, 2014, had been altered using whitener, without any authentication of the change.

The ED found that the processing of Parvathi’s file violated standard procedures, with the then MUDA Commissioner Dr. D.B. Natesh, personally selecting the sites for allotment. “The proposal for site allocation was not submitted by the site allotment section but was carried out directly by the Commissioner, indicating undue favour,” the ED claimed.

The entire process of de-notification, land purchase and subsequent conversion for non-agricultural purposes was allegedly orchestrated under influence to secure possession of prime                                   land at a layout being developed by MUDA.

This land was eventually gifted to Parvathi, who presented the illegally acquired property, obtained through influence, as “untainted” land obtained through a gift, the ED said.