Probe Agency Challenges Closure Report In MUDA Case

The Enforcement Directorate (ED) has challenged the closure report filed by the Lokayukta police in the MUDA site allotment case involving Karnataka Chief Minister Siddaramaiah and others.

The ED filed a protest petition on Tuesday before the Special Court for MPs and MLAs against the Lokayukta police, stating that it is the aggrieved party in the case.

The central agency quoted the statement of objects and reasons of PMLA-2002 in its petition, which read, "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 said the state (country) comes under the definition of 'victim' of Money Laundering offence.

It further said the agency should be construed as an aggrieved person, as they are the prosecutors under the Prevention of Money Laundering Act and thus it has a right or locus standi to protest or to be heard before any order is passed on the closure report filed by the investigating agency (Lokayukta police).

"Since the offence of Money Laundering and Predicate offence are intrinsically linked the Enforcement Directorate cannot be said to be an alien to the issues involved in the Predicate Offence. Further, in the instant case the Directorate of Enforcement had shared the evidences/information gathered during the course of investigation, under PMLA," ED said in its petition.

The court will decide whether or not to entertain the protest petition.

The Lokayukta police probing the MUDA site allotment case had mentioned that the charges against CM Siddaramaiah and his wife Parvathi could not be proved for want of evidences.

The probing officers said they have submitted the final report to the High Court.

"Since the above allegations against accused-1 to accused-4 in the case have not been proven due to lack of evidence, the final report is being submitted to the High Court," the Lokayukta police said in a letter to activist Snehamayi Krishna who is a complainant in the MUDA case.

Besides Siddaramaiah and his wife Parvathi, his brother-in-law and the land owner Devaraju are the accused.

According to Lokayukta police, further investigation will be conducted into the allegations of Mysore Urban Development Authority (MUDA) providing compensatory plots in the ratio of 50:50 from 2016 to 2024 and an additional final report will be submitted to the High Court under Section 173 (8) CrPC.

In the MUDA site allotment case, it is alleged that compensatory sites were allotted to Siddaramaiah's wife in an upmarket area in Mysuru, which had higher property value as compared to the location of her land which had been 'acquired' by the MUDA.

The MUDA had allotted plots to Parvathi under a 50:50 ratio scheme in lieu of 3.16 acres of her land, where it developed a residential layout.

Under the controversial scheme, MUDA allotted 50 per cent of developed land to the land losers in lieu of undeveloped land acquired from them for forming residential layouts.

It is alleged that the CM's wife had no legal title over this 3.16 acres of land at survey number 464 of Kasare village, Kasaba hobli of Mysuru taluk.

The Lokayukta as well as the ED are probing the matter simultaneously.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)