Karnataka: ED arrests two in KIADB compensation 'fraud' case
New Delhi, Sep 5: The Enforcement Directorate (ED) on Thursday said it has arrested a retired official of the Karnataka Industrial Area Development Board (KIADB) and a land broker as part of a money-laundering probe linked to an alleged fraudulent disbursal of compensation worth Rs 72 crore.
Vasantkumar Durgappa Sajjan, a retired special land acquisition officer of the KIADB, and Maibub Allabuksh Dundasi were taken into custody on Tuesday under the provisions of the Prevention of Money Laundering Act (PMLA), the ED said in a statement.
The KIADB is the nodal agency for land acquisition in Karnataka.
The money-laundering case stems from an FIR and a chargesheet filed by the Dharwad district CID, alleging that Sajjan and some other officials of the KIADB, Dharwad "conspired" with land brokers and some other accused and sanctioned an amount of Rs 19.99 crore to seven individuals on the pretext of compensation for land acquisition.
"However, these individuals had been paid compensation previously. This caused loss to the government exchequer," the federal agency said.
The ED found out that money was withdrawn "fraudulently" from the KIADB as compensation for land acquisition during 2021-22. However, compensation to the original land sellers was paid in 2010-12, the probe found.
It was found that the fraudulently-withdrawn money was transferred into bank accounts opened with fake identity and address proofs, the agency claimed.
"The actual fraudulent payments exceeded the FIR amount, reaching approximately Rs 72 crore.
"These payments were made to bank accounts opened with fake identities and then laundered through shell accounts. The funds were used to acquire immovable properties, vehicles, residential properties and fixed deposits," the ED said.
Searches were conducted by the agency in the case at a dozen locations across Karnataka last month.
ED, Bengaluru has arrested Vasantkumar Durgappa Sajjan, a retired Special Land Acquisition Officer of the Karnataka Industrial Area Development Board (KIADB), and land broker Maibub Allabuksh Dundasi on 3/09/2024 under the PMLA, 2002.
— ED (@dir_ed) September 5, 2024
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BMW hit-and-run case: HC refuses to release accused Mihir Shah on ground of 'illegal' arrest
Mumbai (PTI): The Bombay High Court on Monday refused to release Mihir Shah, the main accused in a BMW hit-and-run case, on the ground of "illegal" arrest.
Shah, the 24-year-old son of a former Shiv Sena leader, and his driver Rajrishi Bidawat had filed petitions in the HC claiming they have been illegally detained and sought immediate release.
Shah was arrested on July 9, two days after he allegedly rammed his BMW car into a two-wheeler in Mumbai's Worli area, killing 45-year-old woman Kaveri Nakhwa and leaving her husband Pradeep injured.
His driver Bidawat, who was also present in the car at the time of the accident, was arrested on the day of the incident.
As per their pleas, the police had not informed them the grounds of their arrest at the time, which they claimed was in violation of the law.
A division bench of Justices Bharati Dangre and Manjusha Deshpande on Monday dismissed the petitions.
"Both the petitions are dismissed," the court said.
The duo sought their release, claiming any further detention would be in utter violation of the constitutional mandate and a failure to comply with Section 50 of the Code of Criminal Procedure.
Under this section, the police, while arresting a person, have to communicate to him/her full particulars of the offence for which he/she is being arrested or other grounds for such arrest.
Both Shah and Bidawat are presently in judicial custody.
In their habeas corpus (produce the person) petitions filed in the HC in August, Shah and Bidawat claimed their detention was illegal and sought that they be released immediately.
Shah, in the plea, sought quashing of the orders passed by a local court remanding him first in police custody and then judicial custody.
He also sought for his arrest to be declared as illegal.
Shah is accused of speeding off towards the Bandra Worli Sea Link after the accident, even as the woman remained on the bonnet of the car and then got entangled in its wheels, for a distance of more than 1.5 kilometres.
As per police, Shah, who fled from the scene, was under the influence of alcohol at the time.
Mihir Shah's father and former Shiv Sena leader Rajesh Shah had also been arrested in the case, but was later granted bail.
