ED Attaches ₹40.08 Crore Worth Properties in MUDA Scam under PMLA

Headnote:

The Directorate of Enforcement (ED), Bengaluru Zonal Office, has provisionally attached 34 immovable properties worth ₹40.08 crore under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the Mysore Urban Development Authority (MUDA) scam. The action follows earlier attachments and the arrest of G.T. Dinesh Kumar, former Commissioner of MUDA, who allegedly facilitated large-scale illegal site allotments.

Background:

1. The case stems from an FIR registered by the Lokayukta Police, Mysore, relating to a large-scale scam in allotment of sites by MUDA.
2. ED’s probe revealed that undue gratification received by the then Commissioner, G.T. Dinesh Kumar, was layered and routed into immovable properties purchased in the names of relatives and associates.
3. Searches conducted in October 2024 uncovered evidence of violations of statutory rules, government orders, and nexus between MUDA officials and real estate businessmen.

ED Findings and Action:

1. Illegal Allotments: 31 MUDA sites were allotted by Dinesh Kumar in violation of Letter dated 14.03.2023,

Government Order dated 27.10.2023,

Karnataka Urban Development Authorities (Allotment of Sites in lieu of Compensation) Rules, 2009 (as amended 2015),

Karnataka Urban Development Authority (Incentive Scheme for Voluntary Surrender of Land) Rules, 1991.

Evidence of Corruption: Cash payments were discovered for site allotments, compensation, and layout approvals.

Earlier Actions:

1. ED had already attached 252 illegally allotted MUDA sites.
2. On 16.09.2025, Dinesh Kumar was arrested under PMLA, 2002 and remains in judicial custody.
3. Till date, properties worth approx. ₹440 crore have been provisionally attached.

Relevant Provisions:

1. Section 5, PMLA, 2002 – Provisional attachment of properties suspected to be “proceeds of crime.”
2. Section 3 & 4, PMLA, 2002 – Definition and punishment for money laundering.
3. Karnataka Urban Development Authorities Rules, 2009 (as amended 2015) & 1991 Rules – Governing legal framework for site allotments, violated in this case.
4. ED continues its crackdown on illegal site allotments under MUDA, uncovering systemic corruption involving officials and real estate players.
5. Properties worth ₹440 crore have been attached so far, marking one of the largest PMLA proceedings in Karnataka.
6. The case highlights the nexus between public officials and private builders and the use of layering techniques to launder illegal gains.