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The ED found out that money was withdrawn "fraudulently" from the KIADB as compensation for land acquisition during 2021-22.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It was found that the fraudulently-withdrawn money was transferred into bank accounts opened with fake identity and address proofs, the agency claimed.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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Karnataka Speaker U T Khader condoles death of Shamanur Shivashankarappa
Belagavi (PTI): Karnataka Assembly Speaker U T Khader on Monday condoled the death of veteran politician Shamanur Shivashankarappa.
The 94-year-old Davangere South MLA died in a private hospital on Sunday after a prolonged illness. His last rites will be performed in Davangere on Monday.
Mourning his demise, Khader said it is a painful day for the House as the sitting member of the state Assembly and former minister has died.
"His contribution to society is vast, not only politically but also religiously, socially and culturally," Khader told reporters here.
In his 94 years Shivashankarappa demonstrated how to take everyone along and used to solve many problems with a smile and patience.
The Speaker said the Assembly members will pay condolences to the departed soul, after which the session will be adjourned for Tuesday.
To a question whether he was looking to increase business hours this time, Khader said there is a business advisory committee that will look into it.
