Bengaluru, 17 Sept

The Enforcement Directorate (ED) has arrested former Mysuru Urban Development Authority (MUDA) commissioner Dinesh Kumar under the anti-money laundering law in connection with the alleged allotment of illegal sites, officials said on Wednesday.

Kumar is expected to be produced before a special PMLA court in Bengaluru, where the ED will seek his custody. The arrest followed searches at two of his Bengaluru residences on Tuesday and his subsequent questioning.

The agency alleged that during his tenure, Kumar was involved in “large-scale illegal allotment” of MUDA sites in exchange for gratification and pecuniary benefits. Investigations also suggest his active role in money laundering activities.

Kumar had been suspended by the state government in September last year after an internal inquiry into MUDA’s functioning, which flagged significant irregularities during his tenure.

The MUDA case also involves allegations related to land allotted to Parvathi, the wife of Karnataka Chief Minister Siddaramaiah. However, the Supreme Court in July quashed ED proceedings against Parvathi and cancelled the summons to Urban Development Minister BS Suresh.

The Justice PN Desai Commission had earlier exonerated Siddaramaiah and his family, finding no illegality in the allotment of 14 plots to Parvathi in exchange for 3.16 acres of her land at Kesare village, Mysuru. Lokayukta police had similarly given a clean chit, citing a lack of evidence.

Under the controversial scheme, MUDA allotted 50 per cent of developed land to landowners instead of the undeveloped land acquired to form residential layouts. Siddaramaiah has maintained that the MUDA takeover of his wife’s four-acre land was illegal, and the alternative plots provided in Mysuru’s upmarket were the only compensation.