BENGALURU: The Enforcement Directorate’s (ED) investigation into the Mysore Urban Development Authority (MUDA) scam has intensified, with fresh and explosive revelations pointing to large-scale corruption and systematic abuse of power. According to information that has emerged during the probe, former MUDA Commissioner G.T. Dinesh Kumar allegedly received bribes amounting to Rs 22.47 crore in exchange for illegally allotting 283 residential plots valued at nearly Rs 140 crore.
Sources familiar with the investigation said the findings emerged during proceedings conducted under the Prevention of Money Laundering Act (PMLA). The ED has reportedly established that illegal allotments were not isolated incidents but part of a much larger scam involving at least 1,095 plots, with a total estimated value of around Rs 700 crore. A detailed list of these plots has been submitted to the agency as part of the ongoing investigation, according to media reports.
Investigators now believe that G.T. Dinesh Kumar played a central role in orchestrating the scam. ED sources have described him as the “mastermind” behind the illegal allotments, alleging that he abused his official position to sanction plots in violation of established rules and procedures. The probe has reportedly uncovered evidence suggesting that bribes were received in multiple forms, including cash, misuse of official instruments, and transactions routed through various individuals and organisations.
A breakdown of the alleged Rs 22.47 crore in bribes reveals a complex web of financial dealings. Of the total amount, Rs 34.65 lakh was reportedly received in cash. A significant portion, Rs 8.28 crore, was allegedly obtained through the misuse of high-security bond papers. Investigators have also traced Rs 5.86 crore to transactions involving members of the Chamundeshwari Nagar Sarvodaya Sangh. Another Rs 3.62 crore is said to have been received from an individual identified as Abdul Waheed.
Further, the ED claims that Rs 1.70 crore was routed through the Cathedral Parish Society, while Rs 1.13 crore was allegedly received from an individual named Ningamma. An additional Rs 1.02 crore was reportedly obtained from the JSS Mahavidyapeeth Employees’ Housing Construction Cooperative Society, and Rs 49 lakh again from Ningamma. According to investigators, these amounts were paid as quid pro quo for the illegal allotment of MUDA plots under the guise of relief or special-category allocations.
Officials probing the case have stated that the illegal allotments were followed by the sale of these plots at market rates, allowing beneficiaries to make substantial profits. The investigation has also revealed the involvement of several real estate entrepreneurs, middlemen, and brokers who allegedly facilitated the illegal transactions and benefited financially from the scam. These intermediaries are believed to have acted as links between officials and beneficiaries, helping to launder money generated through unlawful allotments.
The ED is now examining both movable and immovable assets linked to the accused, including properties allegedly acquired using proceeds of crime. Sources said further searches and attachments of assets could follow as the agency builds its case. Financial trails, bank transactions, property records, and documentary evidence related to cooperative societies and trusts are reportedly under close scrutiny.
The MUDA scam has triggered significant political and administrative repercussions in Karnataka, with opposition parties demanding strict action against those involved and calling for accountability at the highest levels. The case has also raised serious questions about governance, oversight mechanisms, and the functioning of urban development authorities.
