ED Attaches Rs. 20.85 Crore Worth Properties in MUDA Scam Case

Background

The Directorate of Enforcement (ED), Bengaluru Zonal Office, has provisionally attached 10 immovable properties having a market value of approximately Rs. 20.85 crore on January 21, 2026, under the Prevention of Money Laundering Act, 2002 (PMLA) in connection with the Mysore Urban Development Authority (MUDA) scam involving Shri Siddaramaiah and others.

The attached assets comprise six illegally allotted MUDA sites, three immovable properties, and one commercial building. The ED initiated its investigation on the basis of an FIR registered by the Lokayukta Police, Mysore, relating to large-scale irregularities in site allotments by MUDA.

According to the ED, searches conducted on October 18 and 28, 2024, revealed that the allotments were made in gross violation of the letter dated March 14, 2023, the Government Order dated October 27, 2023, the Karnataka Urban Development Authorities (Allotment of Sites in Lieu of Compensation for Land Acquired) Rules, 2009 (as amended in 2015), and the Karnataka Urban Development

Authority (Incentive Scheme for Voluntary Surrender of Land) Rules, 1991. The searches also uncovered a nexus between MUDA officials and real estate businessmen, including evidence of cash payments for allotment of sites and layout approvals.

Earlier, the ED had attached 283 illegally allotted MUDA sites and three personal properties. G.T. Dinesh Kumar, former MUDA Commissioner, was arrested under the PMLA on September 16, 2025, and remains in judicial custody. The ED stated that Proceeds of Crime valued at approximately Rs. 460 crore have been attached so far. Further investigation is ongoing.