The Enforcement Directorate (ED) has attached assets worth Rs 44 crore belonging to builder Lalit Tekchandani and his associates as part of a money-laundering investigation.

NEW DELHI: The Enforcement Directorate (ED) has contested the closure report filed by the Lokayukta police in the MUDA site allotment case involving Karnataka Chief Minister Siddaramaiah and others.
On Tuesday, the ED filed a protest petition before the Special Court for MPs and MLAs, asserting that it is an aggrieved party in the case.
In its petition, the central agency cited the statement of objects and reasons of the Prevention of Money Laundering Act (PMLA), 2002, stating, “It is being realised, world over, that money laundering poses a serious threat not only to the financial systems of countries, but also their integrity and sovereignty.” The ED argued that the state (country) qualifies as a victim of a money laundering offense.
The ED further contended that as the prosecuting agency under PMLA, it has the legal standing to challenge the closure report filed by the Lokayukta police.
The agency asserted that money laundering offenses and predicate offenses are intrinsically linked, making it a stakeholder in the case. It also pointed out that it had shared crucial evidence and information during the investigation under PMLA.
The court will now decide whether to entertain the ED’s protest petition.
The Lokayukta police, in their closure report, stated that the charges against CM Siddaramaiah, his wife Parvathi, and other accused could not be proven due to a lack of evidence. They have submitted the final report to the Karnataka high court.
In a letter to activist Snehamayi Krishna, the complainant in the case, the Lokayukta police said, “Since the allegations against accused-1 to accused-4 have not been proven due to lack of evidence, the final report is being submitted to the high court.”
Apart from Siddaramaiah and his wife, the other accused in the case include his brother-in-law Devaraju and a landowner. However, the Lokayukta police stated that further investigation would be conducted into allegations that the Mysore Urban Development Authority (MUDA) provided compensatory plots in a 50:50 ratio from 2016 to 2024, and a supplementary final report would be submitted to the High Court under Section 173(8) CrPC.
The MUDA site allotment case revolves around allegations that compensatory sites were allotted to Siddaramaiah’s wife in an upmarket area of Mysuru, which had a higher property value compared to the original land location. Under the scheme, MUDA had allotted plots to Parvathi in exchange for 3.16 acres of her land, where it later developed a residential layout.
The controversial scheme allows MUDA to allot 50% of developed land to landowners in exchange for undeveloped land acquired for residential projects. However, allegations suggest that Parvathi lacked a legal title over the 3.16 acres in survey number 464 of Kasare village, Mysuru taluk.
Both the Lokayukta police and the ED are continuing parallel investigations into the matter.