ED Arrests Vasantkumar Sajjan and Maibub Dundasi in Karnataka Land Scam
The Directorate of Enforcement (ED) in 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. They were arrested under the Prevention of Money Laundering Act (PMLA), 2002.
Details of the Fraud
This action is part of an ongoing investigation into a fraudulent double payment scheme involving KIADB. The scheme involved improper disbursement of compensation amounting to Rs. 72 Crore. The investigation was initiated based on an FIR registered by Vidyagiri Police Station, Dharwad, and later transferred to the CID, Dharwad.
How the Fraud Happened
It is alleged that V D Sajjan and other officials conspired with land brokers to sanction Rs. 19.99 Crore to seven individuals as compensation for land acquisition. However, these individuals had already been compensated earlier, causing a loss to the government. The fraudulently withdrawn money was transferred into bank accounts opened with fake identities and laundered through shell accounts.
Investigation Findings
The ED’s investigation revealed that the actual fraudulent payments exceeded the FIR amount, reaching approximately Rs. 72 Crore. The funds were used to acquire immovable properties, vehicles, residential properties, and fixed deposits. Earlier, on August 9 and 10, 2024, the ED conducted search operations across 12 locations in Karnataka, leading to the seizure of Rs. 1.50 crore in cash and significant evidence of the scam.
Doubts Revealed
ED -: ED stands for the Directorate of Enforcement. It is a government agency in India that investigates financial crimes like money laundering.
Vasantkumar Sajjan -: Vasantkumar Durgappa Sajjan is a retired Special Land Acquisition Officer. He used to work for the government to help buy land for public projects.
Maibub Dundasi -: Maibub Allabuksh Dundasi is a land broker. A land broker helps people buy and sell land.
Karnataka -: Karnataka is a state in the southern part of India. Bengaluru is its capital city.
Land Scam -: A land scam is when people cheat others to make money from land deals. In this case, it involved fake payments for land.
Bengaluru -: Bengaluru is the capital city of Karnataka. It is also known as Bangalore and is famous for its tech industry.
Special Land Acquisition Officer -: A Special Land Acquisition Officer is a government official who helps buy land for public projects like roads and schools.
Prevention of Money Laundering Act -: The Prevention of Money Laundering Act is a law in India that helps catch and punish people who try to hide money made from illegal activities.
Karnataka Industrial Area Development Board (KIADB) -: KIADB is a government agency in Karnataka that helps develop industrial areas by buying and preparing land for factories and businesses.
Rs. 72 Crore -: Rs. 72 Crore is a large amount of money. One crore is equal to 10 million rupees, so 72 crore is 720 million rupees.
Laundered -: Laundered means to hide the origin of money made from illegal activities by making it look like it came from a legal source.
Fake bank accounts -: Fake bank accounts are accounts that are created using false information to hide illegal activities.
