The Enforcement Directorate (ED) has lodged a protest against the closure report filed by the Lokayukta police in the Mysore Urban Development Authority (MUDA) site allotment case, which involves Karnataka Chief Minister Siddaramaiah and others. The challenge was presented before the Special Court for MPs and MLAs on Tuesday, asserting that the ED is an aggrieved party in the proceedings.
In its petition, the ED emphasized the significant threats posed by money laundering to the financial systems, integrity, and sovereignty of nations, citing the Prevention of Money Laundering Act (PMLA) of 2002. The agency argued that it should be considered a victim of the alleged money laundering activities, thereby possessing the standing (locus standi) to protest or be heard before any decision is made regarding the Lokayukta police’s closure report.
The central agency elaborated that money laundering and its underlying offenses, termed as ‘Predicate Offences,’ are closely linked, thus justifying its involvement in the case. “The Enforcement Directorate cannot be seen as unrelated to the issues involved in the Predicate Offence,” stated the ED in its filing, adding that it had shared crucial evidence and information gathered during its investigation under the PMLA.
The court is set to determine the admissibility of the ED’s protest petition in the upcoming sessions.
The controversy centers around allegations that Siddaramaiah’s wife, Parvathi, was improperly allotted compensatory plots by the MUDA. These plots, located in a more affluent area of Mysuru, were allegedly more valuable than the land she previously owned, which had been acquired by MUDA. The allotment was made under a scheme that provided 50% of developed land to those from whom land was taken, a scheme that has now come under scrutiny.
The Lokayukta police, after investigating these allegations, reported a lack of evidence to substantiate the charges against the Chief Minister, his wife, his brother-in-law, and the land owner, Devaraju. This led to the submission of a closure report to the High Court, despite plans for further investigation into other aspects of the MUDA’s operations between 2016 and 2024.
