Trouble mounts for Siddaramaiah as ED books him in MUDA-linked money-laundering case

New Delhi: In fresh trouble for the Karnataka Chief Minister, the Enforcement Directorate (ED) has registered a money laundering case against Siddaramaiah in connection with the alleged irregularities in the land allotment by Mysuru Urban Development Authority (MUDA) to his wife.

Congress reacted sharply to the ED move saying the Chief Minister will be “vindicated” at the end, as it is “no secret” that the agency has become an “instrument of harassment, vendetta, revenge, and vengeance on his political opponents by the non-biological PM”.

Sources said the ED filed the Enforcement Case Information Report (ECIR) by taking cognisance of an FIR filed by the Lokayukta Police in Karnataka on September 27 against the chief minister, his wife BM Parvathi and brother-in-law Mallikarjuna Swamy among others.

The agency has invoked relevant sections of the Prevention of Money Laundering Act (PMLA) against the chief minister and others in the ECIR, which is the equivalent of FIR in a police case.

Sources said ED is likely to issue a notice to the chief minister and others accused in the case asking them to appear before investigators for questioning.

The ED cannot take up cases on its own and it has to rely on FIRs filed by other agencies in which money laundering is suspected. Sources said the decision came after studying FIR registered by the Lokayukta Police to see whether they could register a case.

Congress General Secretary (Communications) Jairam Ramesh posted on ‘X’, “The people of Karnataka rejected him (Prime Minister Narenda Modi) resoundingly in May 2023 and he has not forgotten that humiliation. Congress believes that he and his ED will stand thoroughly exposed soon. We have nothing whatsoever to fear. The CM of Karnataka will be vindicated.”

With the ED initiating investigation, Siddaramaiah has now joined a host of opposition leaders like his Jharkhand counterpart Hemant Soren and former Delhi Chief Minister Arvind Kewjriwal who faced trouble with the central agency while in power.

Several other Opposition politicians, including Karnataka Deputy Chief Minister DK Shivakumar, were investigated by the ED. Kejriwal, Soren and Shivakumar among others were arrested by the ED earlier.

The Opposition has been accusing the BJP-led union government of misusing central agencies like ED, CBI and Income Tax to target Opposition politicians.

Denying the allegations against him, Siddaramaiah has already claimed that he was being targeted by the BJP and that it was the first “political case” against him. Siddaramaiah is facing allegations that his wife was allotted 11 plots in upmarket Mysuru with higher property value against land that was acquired by MUDA from her.

The Congress has rallied behind him while ruling out his resignation from the post of Chief Minister. Congress believes that the allegations and subsequent actions, including sanction for investigation by Gehlot, were part of a design to target an "OBC Chief Minister" and derail the ‘guarantees’ that are being implemented by the Congress government.