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The Enforcement Directorate has filed a prosecution complaint in a Transferable Development Rights (TDR) fraud case in Bengaluru, naming a director of Valmark Realty Holdings Pvt Ltd and 19 others, including former Bruhat Bengaluru Mahanagara Palike (BBMP) officials and brokers. The case originates from a 2019 Anti-Corruption Bureau FIR and involves the alleged fraudulent procurement and sale of Development Rights Certificates. Investigators stated that land records were manipulated and land already sold to third parties was falsely shown as eligible for TDR benefits. The alleged scheme generated illegal proceeds of about INR 27.68 crore.
The Enforcement Directorate (ED) has filed a prosecution complaint in a Transferable Development Rights (TDR) fraud case in Bengaluru, naming a director of Valmark Realty Holdings Pvt Ltd along with 19 other individuals. Those named in the complaint include former employees of the Bruhat Bengaluru Mahanagara Palike (BBMP), brokers, intermediaries and individuals who were allegedly involved in obtaining and selling development rights through fraudulent means. Advertisement
The money laundering investigation is linked to a First Information Report registered by the Anti-Corruption Bureau in 2019. According to investigators, the case relates to the fraudulent procurement of Development Rights Certificates (DRCs) and the subsequent sale of TDR to builders, developers and other buyers. Authorities stated that the illegal sale of these development rights generated proceeds of crime estimated at around INR 27.68 crore.
Officials involved in the investigation indicated that the director of Valmark Realty Holdings Pvt Ltd allegedly obtained development rights by misrepresenting facts related to land ownership and eligibility. These development rights were later transferred or sold to various real estate entities and individuals, creating significant financial gains. Investigators believe that the transactions were carried out through a network of brokers and associates who coordinated with landowners and certain civic officials to process the applications.
The probe identified several brokers, including K. Suresh, K. Gautham and B.S. Surendranath, who allegedly played an important role in facilitating the process. According to the ED, these individuals helped arrange agreements between former landowners and developers while ensuring that applications for development rights were submitted to the municipal authorities. Investigators stated that in several instances the accused concealed the fact that the land parcels had already been sold to third parties.
The investigation also focused on land located in Kowdenahalli in east Bengaluru. Authorities found that the records of rights, tenancy and crops (RTC) were allegedly manipulated in favour of the legal heirs of a landowner identified as Revanna. However, investigators stated that the land had already been converted into a revenue layout and had been sold to multiple buyers earlier. Despite this, the land was presented as agricultural land so that it could qualify for the issuance of Development Rights Certificates.
Officials further stated that agreements and general powers of attorney were executed to initiate the administrative process for securing TDR benefits. Following this, municipal procedures such as inspections and valuation reports were carried out, which ultimately resulted in the issuance of development rights certificates covering around 10,672.14 square metres. Investigators also found that a building located on a neighbouring survey number was allegedly projected as being part of the land parcel in order to justify the grant of development rights.
Another part of the investigation revealed that brokers entered into agreements with individuals identified as Muniraju and Srinivas for the purpose of securing development rights, even though they were no longer the lawful owners of the land in question. Investigators stated that powers of attorney were later registered at the Sub-Registrar's office in Indiranagar to enable the processing of development rights applications before the municipal authorities.
As part of the probe, the ED conducted searches at nine locations linked to the accused. These included the office premises of Valmark Realty Holdings Pvt Ltd, the residence of the company's director and premises associated with brokers, builders and individuals suspected of acting as applicants for the development rights. During the searches, officials collected documents and financial records that helped investigators understand how the alleged scheme was structured and executed.
Investigators stated that the proceeds obtained from the sale of the TDR were routed through several bank accounts before being used for business expenses and property transactions. According to the agency, this layering of funds was allegedly carried out to integrate the illegal proceeds into legitimate financial channels.
Transferable Development Rights are typically granted when landowners surrender a portion of their land to civic authorities for public infrastructure projects such as road widening, public amenities or open spaces under city development plans. In return, the landowner receives additional development potential that can be used on another property or sold to other developers. Authorities involved in the probe indicated that the accused allegedly misused this mechanism by presenting land parcels as eligible for TDR benefits even though they did not meet the required conditions.
Officials stated that the investigation is still continuing and that other instances of suspected TDR fraud related to road widening projects in Bengaluru are also being examined as part of the broader probe.
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