The Directorate of Enforcement (ED) in Bengaluru has significantly advanced its investigation into the notorious MUDA scam. On October 4, 2025, the ED provisionally attached 34 immovable properties, including various MUDA sites, collectively valued at an estimated ₹40.08 crore under the Prevention of Money Laundering Act (PMLA).
This latest action stems from an FIR originally registered by the Lokayukta Police in Mysuru, which exposed a large-scale scandal involving illegal site allotments by the Mysore Urban Development Authority (MUDA).
Investigations by the ED have meticulously uncovered how G.T. Dinesh Kumar, the former Commissioner of MUDA, allegedly routed and layered illicit gains. These proceeds of crime were reportedly used to acquire immovable properties in the names of his relatives and associates. Furthermore, the inquiry revealed that Kumar was directly involved in the illegal allotment of 31 MUDA sites.
Unveiling the MUDA-Real Estate Nexus
Searches conducted by ED officials in October 2024 brought to light severe violations in the site allotment process. These allotments flagrantly disregarded official directives, including a letter dated March 14, 2023, a Government Order from October 27, 2023, and specific rules outlined in the Karnataka Urban Development Authorities (Allotment of Sites in lieu of compensation for the land Acquired) Rules, 2009 (as amended in 2015), as well as the Karnataka Urban Development Authority (Incentive Scheme for voluntary Surrender of Land) Rules, 1991.
The extensive search operations also exposed a deep-seated connection between MUDA officials and influential real estate businessmen. Evidence collected indicates that cash payments were made for site allotments as compensation and for the approval of various layouts, highlighting a systematic corruption network.
Previously, the ED had already provisionally attached a total of 252 illegally allotted MUDA sites as part of this ongoing case. G.T. Dinesh Kumar, identified as a key figure responsible for these large-scale illegal allotments, was arrested on September 16 under the provisions of PMLA, 2002.
Kumar is currently in judicial custody. To date, the total proceeds of crime attached in this case under PMLA, 2002, amount to approximately ₹440 crore, underscoring the magnitude of the financial irregularities uncovered.