Trouble mounts for Siddaramaiah as ED likely to probe Karnataka CM in MUDA land 'scam'

The Enforcement Directorate (ED) is likely to register a case of money laundering against Karnataka Chief Minister Siddaramaiah and his wife in connection with the MUDA case, The Indian Express reported on Monday. An Enforcement Case Information Report (ECIR) may be registered by the end of the day or by tomorrow, based on an FIR registered by the Karnataka Lokayukta, sources told IE. 

"We are in possession of the details of the FIR and relevant case details. The offences fall under the schedule of the Prevention of Money Laundering Act (PMLA). A case will be registered soon after completing necessary formalities," a senior ED official was quoted as saying by the national daily.

On Friday, the Lokayukta Police registered a First Information Report (FIR) against Siddaramaiah and others in the Mysuru Urban Development Authority (MUDA) site allotment case, following the court order. A Special Court in Bengaluru had on Wednesday ordered a Lokayukta police probe against Siddaramaiah in the case.

The order of the Special Court came a day after the High Court upheld the sanction granted by the Governor to conduct an investigation against Siddaramaiah on the allegations of illegalities in the allotment of 14 sites to his wife B M Parvathi by MUDA. Siddaramaiah's wife Parvathi, brother-in-law Mallikarjuna Swamy, Devaraju (from whom Mallikarjuna Swamy purchased land and gifted it to Parvathi) and others are named in the FIR.

The ED is expected to press sections of the Prevention of Money Laundering Act (PMLA). Sources told India Today that the central agency is studying the Lokayukta Police FIR. According to procedure, the ED is empowered to summon the accused for questioning and even attach their assets during investigation.

MUDA allegedly acquired a parcel of land owned by Siddaramaiah's wife and compensated her with higher-value plots. The BJP-led opposition and some activists have accused Siddaramaiah and Parvathi of benefiting from this "illegal" compensatory land deal, estimating the alleged irregularities to be worth Rs 4,000 crore.

At the heart of the charge is a 3.16-acre parcel of land in Mysuru's Kesaru village that was allegedly transferred to Siddaramaiah's brother-in-law Mallikarjun Swamy in 2005. Siddaramaiah's wife received the land as a gift in 2010. However, the land was acquired by MUDA to develop a layout and the CM's wife was allocated alternative sites. The activists and the BJP have claimed that Siddaramaiah's wife received alternative plots in localities that had a higher circle rate, thereby jacking up the value of the asset than the actual land in Kesaru.