Muda scam | Probe indicates active involvement of ex-commissioner in illegal allotment of sites: ED

Mangalore Today News Network

Bengaluru, Sep 19, 2025: The Enforcement Directorate (ED) on Thursday said that ex-MUDA commissioner G T Dinesh Kumar played a major role in the illegal allotment of compensation sites to ineligible entities and individuals.
Kumar is currently in ED custody for nine days after his arrest on Wednesday.

"The evidence and documents collected during the course of investigation in this case has indicated active involvement of G T Dinesh Kumar in the comprehensive money laundering scheme perpetrated at MUDA, Mysore during his tenure as Commissioner," the ED alleged.

ED initiated investigation based FIR registered by the Lokayukta Police in 2024 on the allegations of large scale illegal allotment of MUDA sites.

"ED investigation revealed a large-scale scam in allotment of MUDA sites by flouting various statutes and government orders/guidelines and by other fraudulent means. The role of ex-MUDA commissioner GT Dinesh Kumar has emerged as instrumental in illegal allotment of compensation sites to ineligible entities/individuals.

"The evidence with respect to obtaining bribes for making illegal allotments in the form of cash, bank transfer, movable/immovable properties have been gathered during the course of the investigation," the agency said in the statement.

The modus operandi for making illegal allotment involved identification of ineligible beneficiaries and making allotment using fake documents or incomplete documents in direct violation of government orders and also backdating of allotment letters in some cases, the ED probe found.

"The gratification received for making these illegal allotments was routed through a co-operative society and bank accounts of the relatives/associates of GT Dinesh Kumar, who has played a key role in the allotment process. The gratification, thus received, was further used to purchase some of these illegally allotted MUDA sites in the name of relatives of GT Dinesh Kumar," the agency alleged.

ED has already attached 252 illegally allotted MUDA sites so far, having a market value of approximately Rs 400 crore. Further investigation is under progress.