In a significant development, the Enforcement Directorate (ED) has filed a case against Karnataka Chief Minister Siddaramaiah concerning alleged money laundering activities linked to the Mysuru Urban Development Authority (MUDA). This move follows the filing of a First Information Report (FIR) by the state’s Lokayukta police on September 27, directed by a special court in Bengaluru.
The FIR names Siddaramaiah, his wife B.M. Parvathi, brother-in-law Mallikarjuna Swamy, and Devaraju, from whom Swamy had purchased land that was later transferred to Parvathi. The court had ordered the Lokayukta police to investigate allegations related to land dealings associated with MUDA.
The special court’s directive to investigate follows the Karnataka High Court’s upholding of the sanction granted by Governor Thaawarchand Gehlot, allowing inquiries into allegations of illegalities surrounding the allotment of 14 sites to Siddaramaiah’s wife by MUDA. As part of the ongoing investigation, the ED is expected to invoke various sections of the Prevention of Money Laundering Act (PMLA) in its Enforcement Case Information Report (ECIR). Sources indicate that the federal agency is currently reviewing the Lokayukta Police FIR.
Under the PMLA, the ED has the authority to summon individuals for questioning and attach assets during its investigations. Siddaramaiah, 76, has publicly stated that he believes he is being targeted in the MUDA case due to political fears from opposition parties. He remarked, “It is the first such political case against me,” and affirmed his commitment to legally contest the allegations, insisting that he has done nothing wrong.
The allegations in the MUDA site allotment case claim that compensatory plots were granted to Siddaramaiah’s wife in a high-value area of Mysuru, significantly more valuable than the land that was “acquired” by MUDA. Under a controversial 50:50 scheme, the MUDA allotted 50% of the developed land to those who lost their undeveloped land for residential layout formation.
The unfolding legal battle surrounding Siddaramaiah and the MUDA case has become a focal point in Karnataka’s political landscape, stirring discussions around accountability and governance in the state. As the investigation progresses, the implications for the Chief Minister and the ruling Congress party remain to be seen.
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