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‘How is this a money laundering case?’ asks Siddaramaiah as ED registers case against Karnataka CM in MUDA scam

ED on Monday registered ECIR against Siddaramaiah, his wife Parvathi and a few others invoked relevant sections of the Money Laundering Act

(File) Karnataka CM Siddaramaiah speaks with the media outside his residence in Mysuru, Karnataka | PTI

Karnataka Chief Minister Siddaramaiah slammed the Enforcement Directorate for registering a money laundering case against him and his family in connection with alleged scam in land allotment by MUDA. The CM asserted he will not resign and fight charges against him legally.

Talking to presspersons, Siddaramaiah said, “I don't know on what grounds it's a money laundering case. Probably you too feel the same. According to me, it does not attract the money laundering case because compensatory sites were given. So, how is it a money laundering case?” PTI reported.

The ED case stems from an FIR registered by Lokayukta in connection with the alleged MUDA scam. The chief minister said he will not tender his resignation over the allegations. “I work with conscience. So there is no need for me to resign,” Siddaramaiah said.

The ED on Monday booked the Karnataka CM, his wife and a few others in a money laundering case linked to the MUDA land allotment case. ED has invoked relevant sections of the PMLA against the Chief Minister and others in its ECIR, PTI reported.

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Siddaramaiah, his wife Parvathi, brother-in-law Mallikarjuna Swamy and Devaraju--from whom Swamy had purchased land and gifted it to Parvathi--and others have been named in the FIR registered by the Mysuru-located Lokayukta police establishment on September 27. 

What’s MUDA scam

MUDA or  Mysuru Urban Development Authority is one of Karnataka’s first urban planning and development bodies. According to reports, allegedly, gross irregularities have been reported in the allotment of residential sites to land losers as compensation.

Allegedly, the authority allotted 14 compensatory sites to Siddaramaiah’s wife Parvathi in Mysuru’s upmarket area as compensation for her land acquired for developing a residential layout. MUDA reportedly acquired 3.16 acres of her land for development. The sites were allotted to Parvathi under a 50:50 ratio scheme. However, it is alleged that the chief minister’s wife had no legal title over the acquired land in Kasaba Hobli of Mysuru taluk.