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The ED found out that money was withdrawn "fraudulently" from the KIADB as compensation for land acquisition during 2021-22.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It was found that the fraudulently-withdrawn money was transferred into bank accounts opened with fake identity and address proofs, the agency claimed.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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Rowdy sheeter Suhas Shetty murder case: NIA conducts raids at 13 sites in Bajpe, Surathkal
Suratkal: In connection with the murder of rowdy-sheeter Suhas Shetty, the National Investigation Agency (NIA) conducted multiple raids on Saturday morning across Bajpe and Suratkal police station limits.
According to sources, the NIA officials carried out simultaneous raids at around 6 AM at 13 locations, including the residences of the arrested accused in the case.
Suhas Shetty was murdered on the evening of May 1 near Kinnipadavu under the jurisdiction of Bajpe Police Station while he was traveling with his friends in a car.
The Ministry of Home Affairs had handed over the investigation of the case to the NIA and issued an official order on June 7.
The NIA’s probe has since intensified, with investigators focusing on uncovering the network of those involved and the planning behind the murder.
