Siddaramaiah is accused number one in the MUDA case and the investigation is also being conducted against others who got the illegal allotments done through the MUDA. His wife B.M. Parvathi is the second accused.

Speaking to the media on Monday at the Vidhana Soudha in Bengaluru, CM Siddaramaiah reacting to the press release issued by the ED concerning the MUDA scam, stated, “There is no connection between me and the press statement released by the ED.”

He further charged that the BJP had unnecessarily released this press statement through the ED.

Reacting to the allegations of misuse of state funds regarding the MUDA and Valmiki Corporation scams and the accusations of holding a national convention event at Belagavi using state tax money from the state, he said that there is no question of misuse of funds.

Regarding the increasing microfinance scams in the rural areas of Mysuru and Chamarajanagar districts and the harassment faced by the people, he assured that legal action would be taken against the institutions involved in harassing the public through microfinance scams.

CM Siddaramaiah also mentioned that, in commemoration of the centenary of the 1924 Belagavi Congress Session, a public meeting will be held after the unveiling of the Mahatma Gandhi statue.

In a setback to Karnataka Chief Minister Siddaramaiah, the Enforcement Directorate (ED), Bangalore Zonal Office provisionally attached 142 immovable properties having an approximate market value of Rs 300 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the Mysuru Urban Development Authority (MUDA) scam.

“The role of ex-MUDA commissioner D.B. Natesh has emerged as instrumental in illegal allotment of compensation sites to Chief Minister Siddaramaiah’s wife B.M. Parvathi,” said the ED in a statement on January 17.

Searches conducted during the investigation further revealed that a large number of sites, other than 14 sites allotted to Chief Minister Siddaramaiah’s wife B.M. Parvathi, have been illegally allotted by MUDA as compensation to real estate businessmen, who in turn sold these sites at a huge profit and generated huge amount of unaccounted cash.

Petitioner Snehamayi Krishna has alleged that illegal allotments by the MUDA amount to thousands of crores of rupees.

The ED said that the profit generated has been laundered and shown as derived from legitimate sources.

“The searches also revealed that sites have been allotted in the name of Benamis/dummy persons of influential persons and real estate businessmen. The incriminating evidence with respect to payment of illegal gratification to then MUDA chairman and MUDA commissioner in the form of immovable property, MUDA sites, cash, etc., were recovered,” the ED stated.

“The attached properties are registered in the name of various individuals who are working as real-estate businessmen and agents,” the ED said.

ED initiated an investigation on the basis of an FIR registered by the Lokayuktha Police Mysuru under various sections of IPC, 1860 and the Prevention of Corruption Act, 1988 against Siddaramaiah and others.

It is alleged that Siddaramaiah used his political influence to get compensation of 14 sites in the name of his wife B.M. Parvathi in lieu of 3 acres 16 guntas of land acquired by the MUDA.

The land was originally acquired by MUDA for Rs 3.24 lakh. The compensation in the form of 14 sites at the posh Vijayanagar locality in Mysuru is worth approximately Rs 56 crore.

The ED said that it has also been revealed that money was routed through a cooperative society for the purchase of property, luxury vehicles etc. in the name of relatives of G.T. Dinesh Kumar, who was the previous commissioner of MUDA.

Further investigation is under progress.

Earlier, Chief Minister Siddaramaiah had outrightly rejected the allegations of illegal allotment. His wife Parvathi had returned the allotted 14 sites to the MUDA.

The Karnataka High Court had adjourned the hearing in the plea seeking a Central Bureau of Investigation (CBI) probe into a case related to the alleged irregularities in the Mysuru Urban Development Authority (MUDA) to January 27.

Siddaramaiah is facing an investigation by Lokayukta and the Enforcement Directorate (ED) in the case for allegedly getting 14 MUDA sites allotted to his family by violating all rules.

Siddaramaiah has filed a petition seeking quashing of proceedings against him in the MUDA case.

Courtesy Media Group: IANS