Karnataka Chief Minister Siddaramaiah on Monday confirmed that his wife, B.M. Parvathi has received a notice from the Enforcement Directorate (ED) in connection with the MUDA scam case.
While answering a media question in this regard, the CM said, "Yes. She has received a notice."
The Enforcement Directorate issued a notice to Parvathi, the second accused in the Mysuru Urban Development Authority scam. The ED also issued notice to the Urban Development Minister Byrathi Suresh, close confidant of CM Siddaramaiah.
According to sources, the notice was issued under Section 50 of the Prevention of Money Laundering (PMLA) Act to Parvathi. Signed by senior ED officer Murali Kannan, it has asked her to appear before the ED sleuths on 28 January (Tuesday).
It is learnt that the ED issued a second notice to the wife of CM, Parvathi. According to information available in public domain, earlier the officers had sought two weeks to plead two grounds that the first occasion cited- on grounds of poor health and advancing age she is incapable of presenting herself before the ED officers and second, the lady prayed for online presentation to which plea no attention is given.
It has come to light that as there is a possibility of the ED taking legal measures against CM Siddaramaiah's wife Parvathi this time, the CM's family has approached the High Court seeking a stay on the notice issued by the ED.
The counsel for Parvathi requested the High Court bench to take up the petition on an emergency basis. Taking into account this request, the court agreed to take up the petition by Monday.
Meanwhile, the High Court has taken up the hearing of a petition seeking the Central Bureau of Investigation (CBI) probe into the MUDA scam.
CM Siddaramaiah is accused number one in the MUDA case and the investigation is also being conducted against others who got the illegal allotments done through the MUDA.
The setback to the Chief Minister came as the ED, Bengaluru Zonal Office provisionally attached 142 immovable properties having an approximate market value of Rs 300 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the MUDA scam.
According to the ED statement on January 17, "the role of ex-MUDA commissioner D.B. Natesh has emerged as instrumental in illegal allotment of compensation sites to Chief Minister Siddaramaiah's wife B.M. Parvathi.".
Further investigation revealed searches that a vast number of sites, apart from the 14 sites allotted to Chief Minister Siddaramaiah's wife B.M. Parvathi, have been allocated illegally by MUDA as compensation to real estate businessmen, who in turn sold these sites at profits and generated a huge amount of unaccounted cash.
The petition by Snehamayi Krishna claims that the total illegal profit to the MUDA amounts to thousands of crores of rupees.
The ED claimed that the entire amount has been laundered and shown as coming through legitimate sources.
The searches also unearthed that sites have been allotted in the name of benamis/dummy persons for the benefit of influential persons and real estate businessmen. The incriminating evidence with respect to payment of illegal gratification to then MUDA chairman and Commissioner in the form of immovable property, MUDA sites, cash, etc., were recovered," the ED stated.
The attached properties are registered in the name of various individuals who are working as real-estate businessmen and agents," the ED said.
ED initiated an investigation on the basis of an FIR registered by Lokayuktha Police Mysuru under various sections of the IPC, 1860 and the Prevention of Corruption Act, 1988 against Siddaramaiah and others.
It is alleged that Siddaramaiah used his political influence to get compensation for 14 sites in the name of his wife B.M. Parvathi in lieu of three acres and 16 guntas of land acquired by the MUDA.
The land was originally acquired by MUDA for Rs 3.24 lakh. The compensation in the form of 14 sites at the posh Vijayanagar locality in Mysuru is worth approximately Rs 56 crore.
The ED said it has also come to light that money was channeled through a cooperative society for the purchase of property, luxury vehicles, etc., in the name of relatives of G.T. Dinesh Kumar, who was the former commissioner of MUDA.
Further probe is in progress.
Earlier, Chief Minister Siddaramaiah had dismissed the allegations of illegal allotment outright. His wife Parvathi had returned the allotted 14 sites to the MUDA.
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