ED Cracks Down on 72-Crore Compensation Fraud

The Enforcement Directorate (ED) has arrested a retired official of the Karnataka Industrial Area Development Board and a land broker in connection with a money-laundering case. The investigation revealed that fraudulent compensation payments worth Rs 72 crore were disbursed through bank accounts created with fake identities.

The Enforcement Directorate (ED) has taken significant action by apprehending a retired Karnataka Industrial Area Development Board (KIADB) official and a land broker. This move is part of ongoing investigations into a massive Rs 72 crore compensation fraud.

The ED's statement revealed that Vasantkumar Durgappa Sajjan, previously a special land acquisition officer with KIADB, and land broker Maibub Allabuksh Dundasi were detained. Their arrests came under the Prevention of Money Laundering Act (PMLA) on Tuesday.

The fraudulent activities were initially flagged by the Dharwad district CID, which had earlier charged Sajjan and others for conspiring with brokers to unlawfully disburse Rs 19.99 crore for false land compensation claims. In reality, this compensation had already been made between 2010 and 2012.

The ED probe further disclosed that the fraudulent payments were transferred to accounts created with fake identities, then laundered via shell accounts. The misappropriated funds were later channeled into purchasing properties, vehicles, and making fixed deposits.

(With inputs from agencies.)