The Directorate of Enforcement (ED), in connection with the alleged MUDA scam, has provisionally attached 34 immovable assets, including MUDA sites, with an approximate market value of Rs 40.08 crore, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, officials said.
The action was taken on Saturday as part of the ongoing ED investigation, based on an FIR registered by the Lokayukta Police, Mysore, concerning the alleged large-scale irregularities in the allotment of sites by the Mysore Urban Development Authority (MUDA).
The federal probe agency’s investigation reportedly revealed the routing and layering of undue gratification obtained by former MUDA Commissioner G.T. Dinesh Kumar, with the proceeds of crime allegedly used to purchase immovable properties in the names of his relatives and associates.
The investigation also uncovered the illegal allotment of 31 MUDA sites by the former Commissioner.
Searches conducted by the ED on October 18 and 28, 2024, found that the sites were allotted in gross violation of a letter dated March 14, 2023, a Government Order dated October 27, 2023, and the Karnataka Urban Development Authorities Rules, 1991.
During the searches, an alleged nexus between MUDA officers and real estate businessmen also came to light. Collected evidence suggests that cash payments were made for site allotments as compensation and for approval of layouts.
Earlier, the ED had provisionally attached a total of 252 illegally allotted MUDA sites. Kumar, responsible for the large-scale illegal allotment of MUDA sites, was arrested under the provisions of PMLA on September 1, 2025.
Currently, the former Commissioner remains in judicial custody, and proceeds of crime with a market value of approximately Rs 440 crore have been attached in the case so far.