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The Enforcement Directorate (ED) has requested additional information on three specific survey numbers from the Mysore Urban Development Authority (MUDA) as part of its money-laundering investigation into the controversial 50:50 land allotment scheme. The probe, which follows allegations of collusion and irregular land transfers, has prompted MUDA to furnish detailed allotment and acquisition records for properties spanning Basavanahalli, Hebbal and Devanur villages. The ED's intensified scrutiny aims to uncover financial misconduct and ensure accountability in the allocation of over 1,000 compensatory sites under the scheme.
The Enforcement Directorate (ED) has stepped up its probe into the Mysore Urban Development Authority's (MUDA) 50:50 land allotment scheme by seeking detailed records for three survey numbers, officials said. The ED's Bengaluru office has formally requested MUDA furnish acquisition and allotment files for parcels in Basavanahalli, Hebbal and Devanur villages, where compensatory plots were granted to landowners in exchange of the acquired land.
Under the contentious 50?:?50 scheme, MUDA allocated half of the developed land back to original landowners, often via General Power of Attorney arrangements. These allotments, critics allege, enabled intermediaries to secure high-value plots at minimal cost, leading to financial irregularities and possible money?laundering. The Supreme Court-appointed Central Empowered Committee has documented instances where plots in upmarket layouts were allotted without clear title.
In its latest supplementary information request, the ED has zeroed in on a four?acre parcel in Basavanahalli village, whose acquisition had previously been quashed by the Karnataka High Court over two decades ago. The agency has demanded MUDA's internal files on the acquisition process, noting that any revival of the allotment without proper legal groundwork could amount to criminal misconduct.
Separately, the ED has pressed for the owner's details and allotment documentation of a two?acre plot in Hebbal village. Investigators aim to verify whether this parcel was rightly included for compensatory allotment under MUDA's rules or if it was improperly channelled to beneficiaries via shell companies.
The third survey number pertains to a 2.22?acre tract in Devanur village. The agency is examining whether MUDA adhered to town planning and engineering norms before granting 28 sites as compensation. This line of inquiry follows allegations that several allotments bypassed mandatory inspection reports, raising questions about procedural fairness.
The 50?:?50 scheme, launched between 2016 and 2024, allotted more than 1,000 compensatory sites across Mysuru, benefitting 135 landowners or their GPAs. However, a Lokayukta probe revealed that several beneficiaries held questionable GPAs, allowing intermediaries to exploit original landowners. The CEC's interim findings noted that in some cases, land was distributed without valid acquisition, underscoring potential collusion between officials and private actors.
As the ED deepens its investigation, MUDA has frozen transactions on the affected sites to prevent further transfers. The agency's actions follow a series of ED raids and notices issued earlier this year, during which MUDA offices and related properties were searched for digital and paper records.
Pending the ED's examination of the records, MUDA has halted all new allotments under the 50?:?50 scheme. The outcome of the probe may determine whether several past allocations are reversed and whether responsible officials face charges under the Prevention of Money Laundering Act.
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