ED takes ex-MUDA Commissioner Dinesh Kumar into custody

The Directorate of Enforcement (ED) has taken former Commissioner of Mysuru Urban Development Authority (MUDA) G.T. Dinesh Kumar into custody.

Mr. Dinesh Kumar was arrested by the ED in Bengaluru late on Tuesday and produced before a special court on Wednesday.

The ED, which had sought permission from the special court to prosecute Mr Dinesh Kumar, had also carried out searches at two residential premises connected to him in Bengaluru under the Prevention of Money Laundering Act (PMLA), 2002.

During his tenure as MUDA Commissioner between January 2022 and June 2024, Mr. Dinesh Kumar is accused of indulging in large-scale illegal allotment of MUDA sites “in lieu of gratification and pecuniary benefits”.

The investigation till now has revealed his active involvement in money laundering, sources said, adding that further investigation is under progress.

According to the ED, Mr. Dinesh Kumar had allegedly colluded with real estate business persons to “illegally and fraudulently allot MUDA sites to ineligible persons”.

It may be mentioned here that two probes – one by the Lokayukta police and the other by a commission headed by retired High Court judge P.N. Desai – had given a clean chit to Chief Minister Siddaramaiah and his family, in connection with the allotment of 14 compensatory sites to his wife Parvathi.

However, the Lokayukta police is conducting further inquiry into the alleged irregularities in the allotment of compensatory sites under the 50:50 scheme from 2016 to 2024, and an additional report in the regard is still awaited.

The P.N. Desai Commission has recommended legal action against the officials responsible for the illegal allotment of sites to persons, who had no right for compensation.

Though Mr. Dinesh Kumar and his predecessor D.B. Natesh had come under the lens of the ED after the Lokayukta registered a case against Mr. Siddaramaiah, his wife, and others, the High Court of Karnataka this January declared as ‘unwarranted, illegal, and an abuse of the process of law’ the actions of the ED in searching the residence of Natesh, a former MUDA Commissioner, summoning him, and recording his statement, in connection with his role in the case of allotment of 14 sites to Ms. Parvathi.