ED Cracks Down: Former MUDA Top Official Nabbed in Massive Karnataka Land Allotment Probe

In a significant escalation of the ongoing investigation into alleged irregularities at the Mysuru Urban Development Authority, the Enforcement Directorate has taken into custody Dinesh Kumar, the agency’s former commissioner. The arrest, executed under the stringent provisions of the Prevention of Money Laundering Act, stems from accusations of widespread unlawful distribution of development sites during his leadership.

Agency representatives disclosed the development on Wednesday, noting that Kumar faces charges of facilitating these improper allocations in return for personal gains and financial incentives. Early probes point to his direct role in channeling proceeds from these dealings through laundering channels, prompting the ED to intensify efforts in mapping the flow of tainted money.

Authorities plan to present Kumar before a designated PMLA court in Bengaluru shortly, with an application anticipated for extended remand to deepen the questioning. This move comes on the heels of targeted raids the previous day at two Bengaluru residences tied to the ex-official, yielding materials crucial to the case.

The scandal, centered on the MUDA’s operations, has ensnared high-profile figures, including Karnataka Chief Minister Siddaramaiah and relatives. At its core, the controversy revolves around the assignment of 14 premium plots in Mysuru’s upscale Vijayanagar Layout—specifically stages 3 and 4—to the chief minister’s spouse, B.M. Parvathi. These were granted via a contentious 50:50 compensation formula, substituting for 3.16 acres of her acquired holdings that MUDA repurposed for residential projects. Critics contend the new sites boast far superior market value compared to the original terrain.

Adding layers to the narrative, the Karnataka government on September 4 endorsed findings from the Justice P.N. Desai Commission, a one-member panel led by the ex-Karnataka High Court judge. Delivered to Chief Secretary Shalini Rajneesh on July 31 in dual volumes, the report absolves Siddaramaiah and his kin of wrongdoing, deeming claims against them baseless. It simultaneously urges disciplinary measures against implicated personnel.

Law and Parliamentary Affairs Minister H.K. Patil underscored the cabinet’s endorsement, stating, “We constituted Justice P.N. Desai’s one-man Commission, which has submitted its report in two volumes. The report makes it clear that there is no truth in allegations made against the chief minister and his family. It has also asked for action against certain officials on various accounts. We have accepted the report and its recommendations.”

This clearance echoes prior affirmations, such as the Lokayukta’s declaration of insufficient proof against the chief minister’s wife. Yet the ED’s actions signal persistent scrutiny, underscored by its recent seizure of 92 properties valued at over ₹100 crore in a parallel PMLA proceeding linked to the affair. As the federal probe unfolds, it lays bare persistent tensions in land governance within the state, with implications rippling through political corridors