MUDA Case: ED Books Karnataka CM Siddaramaiah In Connection With Money-Laundering

The Enforcement Directorate on Monday booked Karnataka Chief Minister Siddaramaiah and some others in a money-laundering case linked to the Mysuru Urban Development Authority, taking cognisance of a recent state Lokayukta FIR, official sources said.

The federal agency has filed an enforcement case information report (ECIR) to book the chief minister and others, they said. Siddaramaiah, his wife B M Parvathi, brother-in-law Mallikarjuna Swamy and Devaraju -- from whom Swamy had purchased land and gifted it to Parvathi -- and others have been named in the FIR registered by the Mysuru-located Lokayukta police establishment on September 27.

The FIR was lodged after a special court in Bengaluru last week ordered a Lokayukta police probe against Siddaramaiah in the case. The order of the special court judge came a day after the high court upheld the sanction granted by Governor Thaawarchand Gehlot to conduct an investigation against the senior Congress leader on allegations of illegalities in the allotment of 14 sites to his wife by the Mysuru Urban Development Authority (MUDA).

The ED has pressed sections of the Prevention of Money Laundering Act (PMLA) to book Siddaramaiah in its ECIR, the equivalent of a police FIR. According to the procedure, the ED is empowered to summon the accused for questioning and even attach their assets during the investigation. Siddaramaiah, 76, had last week said he was being targeted in the MUDA issue as the opposition was "scared" of him and noted that it was the first such "political case" against him.

He also reiterated that he would not resign following the court ordering a probe against him in the case as he has done no wrong and asserted that he would fight the case legally. In the MUDA site-allotment case, it is alleged that compensatory sites were given to Siddaramaiah's wife in an upmarket area in Mysuru, which had higher property value as compared to the location of her land that was "acquired" by MUDA.

The Lokayukta FIR has been registered under various sections of the Indian Penal Code (IPC) like 120B (criminal conspiracy), 166 (public servant disobeying law, with intent to cause injury to any person), 403 (dishonest misappropriation of property), 406 (criminal breach of trust), 420 (cheating and dishonestly inducing delivery of property), 426 (mischief), 465 (forgery), 468 (forgery for purpose of cheating), 340 (wrongful confinement) and 351 (assault).