On September 3, the Enforcement Directorate (ED) in Bengaluru arrested former special land acquisition officer VD Sajjan of the Karnataka Industrial Area Development Board (KIADB) and land broker MA Dundasi. This action relates to an ongoing investigation into a fraudulent land acquisition scheme, invoking the Prevention of Money Laundering Act (PMLA), 2002.
According to an official release from the ED, the arrests are part of a probe into a double payment scheme involving KIADB, which improperly disbursed compensation totaling Rs72 crore. The investigation began following an FIR registered by the Vidyagiri police station in Dharwad, which charged Sajjan and others under various sections of the Indian Penal Code (IPC).
The FIR was later transferred to the CID in Dharwad, which subsequently filed a chargesheet. Allegations indicate that Sajjan and other KIADB officials colluded with brokers to sanction approximately Rs19.99 crore to seven individuals under the pretense of land acquisition compensation, despite these individuals having received payments earlier.
The fraudulent withdrawals from KIADB occurred in 2021-22, while the original land sellers had been compensated between 2010 and 2012. Funds were illicitly transferred into bank accounts created with fake identities and address proofs, and were subsequently used to acquire movable and immovable properties, as well as fixed deposits.
On August 9 and 10, the ED conducted searches at 12 locations across Karnataka, resulting in the seizure of Rs1.50 crore in cash and crucial evidence related to the scam.