Bengaluru
The Enforcement Directorate (ED) has arrested former Mysuru Urban Development Authority (MUDA) commissioner GT Dinesh Kumar on suspicion of money laundering linked to illegal site allocations. The arrest came after searches at Kumar’s Bengaluru residences and questioning under the Prevention of Money Laundering Act (PMLA), 2002.
ED sources said Kumar, who served as MUDA commissioner from 2022 to 2024, was involved in large-scale illegal allotment of MUDA sites in exchange for bribes and other benefits. The investigation revealed that Kumar laundered money through loans and property transfers involving his relatives and associates.
Earlier in June 2025, ED attached 92 properties worth about Rs 100 crore linked to the MUDA scam. The probe exposed a “deep-rooted nexus” between MUDA officials, real estate businessmen, and influential figures involved in fraudulent site allotments.
The agency clarified that Kumar’s arrest is not directly connected to the alleged scam involving Karnataka Chief Minister Siddaramaiah and his wife but focuses on overall illegal allotments. Several others, including private individuals and organizations, were also named for receiving illegal site allotments.
ED continues its investigation into the extensive misuse of MUDA’s site allocation system.
