Bengaluru: The Enforcement Directorate (ED) has arrested former MUDA commissioner Dinesh Kumar under the provisions of the anti-money laundering law in connection with the alleged illegal allotment of sites, officials said on Wednesday.

Searches precede arrest

The arrest came after the federal probe agency on Tuesday searched two residential premises in Bengaluru linked to Kumar in the MUDA illegal sites allocation “scam.”

Alleged illegal allotments

According to the ED, Kumar, during his tenure as MUDA commissioner, indulged in “large-scale illegal allotment” of MUDA sites in exchange for “gratification and peculiarly benefits.” ED sources stated that the probe has found his “active” involvement in money laundering activities.

Court proceedings

Kumar is expected to be produced before a designated special Prevention of Money Laundering Act (PMLA) court in Bengaluru, where the agency will seek his custody, officials said.

Broader investigation

The ED is conducting a money laundering investigation into the MUDA allotment of land parcels case on the basis of a Karnataka Lokayukta Police FIR. The FIR had named Karnataka Chief Minister Siddaramaiah, his wife BM Parvathi, the CM's brother-in-law Mallikarjuna Swamy, Devaraju – from whom Swamy purchased the land under probe and gifted it to Parvathi – and several others.