BENGALURU: Karnataka chief minister Siddaramaiah faces fresh legal tangle as Enforcement Directorate (ED) has filed a protest petition challenging closure report submitted by Lokayukta police in the Mysore Urban Development Authority (Muda) site allotment case.
The ED Tuesday approached Special Court for MPs and MLAs, arguing it is an aggrieved party in the case and has the right to contest Lokayukta police’s findings. The central agency cited the Prevention of Money-Laundering Act (PMLA), 2002, highlighting the grave threat money-laundering poses to financial systems and national integrity.
ED said “significant evidence” exists against the CM and his family, contradicting Lokayukta police’s findings. The eight-page petition names Siddaramaiah, wife Parvathi, brother-in-law Mallikarjuna Swamy and others, highlighting serious allegations in the Muda case.
The Special Court for People’s Representatives will decide whether to entertain the ED’s protest petition.
The case pertains to the alleged allotment of 14 plots by Muda to Siddaramaiah’s wife in 2021 in Mysuru’s Vijayanagara area. ED contends Muda had acquired 3.1 acres of land belonging to Parvathi in Kesare village near Mysuru and provided her compensatory plots in prime locations.
“Our investigation has proved that the CM and his family committed mistakes. However, since there is no evidence in the Lokayukta report, it has been concluded that they are not at fault. This is not the right conclusion. Therefore, it is requested to reject this report,” the ED stated in its application.
In Feb 2025, Lokayukta police had given an almost “clean chit” to Siddaramaiah, Parvathi and brother-in-law citing a lack of evidence. The report stated there was no political influence in the allocation of 14 sites and attributed the fault to Muda officials.
“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,” ED stated in its petition. It further argued the state should be considered a ‘victim’ of money-laundering offenses, giving the agency the standing (locus standi) to challenge the closure report.
ED emphasised that money-laundering and predicate offences are intrinsically linked. “Since the offences of money-laundering and predicate offence are intrinsically linked, ED cannot be said to be an alien to the issues involved in the predicate offence. Further, in the case, ED had shared evidence/information gathered during investigation under PMLA,” ED stated.
RTI activist Snehamayi Krishna questioned the findings. Now, ED has sought to overturn them. Opposition parties, including BJP and JD(S), have seized on the issue, alleging Lokayukta report was biased in Siddaramaiah’s favour.
The Congress has dismissed ED’s petition, alleging political vendetta. “ED is working on the instructions of the central government. It is conspiring against Siddaramaiah,” a party spokesperson said.
Karnataka high court had previously quashed ED summons related to the case, but the central agency’s latest move has reignited pressure for further investigation.
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