Bengaluru ED Cracks Down on KIADB Double Compensation Scam in Dharwad
Bengaluru’s Enforcement Directorate (ED) team just took a big step in a major money laundering case. On Tuesday, the Bengaluru Zonal Office filed a fresh supplementary complaint against 17 accused people in a Prevention of Money Laundering Act (PMLA) court in Mangaluru. This ties back to a shocking double compensation scam at the Karnataka Industrial Area Development Board (KIADB) in Dharwad, involving V.D. Sajjan and others under the PMLA 2002 rules.
The scam mastermind? V.D. Sajjan, a retired Special Land Acquisition Officer from Dharwad, who teamed up with other suspects to pull off the fraud. ED officials say three key players got arrested during the probe, and they’re all behind bars in judicial custody right now under PMLA 2002.
Digging deeper, the ED’s investigation under PMLA 2002 exposed a clever trick the accused used to grab double compensation from KIADB. They targeted landowners who already got paid, those who had passed away, or even folks who didn’t qualify at all. To make it worse, the group slyly updated Aadhaar details of random people to build fake identities. These bogus profiles helped them open bank accounts and launder the dirty money from the crime.
It all started with a police FIR about seven shady transactions at KIADB Dharwad, worth Rs 19.9 crore. But the PMLA probe blew the lid off even more—uncovering a whopping 29 fraudulent deals totaling Rs 64.48 crore. ED shared all these details with law enforcement agencies handling the main case, as per Section 66(2) of PMLA 2002.
In the meantime, ED has seized properties worth nearly Rs 13 crore linked to this scam. Back in November 2024, they had already filed the first complaint against 22 accused in Mangaluru’s PMLA Additional District and Sessions Court. The court accepted the case, and it’s now in trial. The investigation keeps going strong, with more updates expected soon.
This KIADB double compensation scam highlights how fraudsters exploit land deals in Karnataka, and ED’s quick action shows they’re serious about stopping money laundering in Bengaluru and beyond. Stay tuned for the latest on this Dharwad case!
