The logo of the Enforcement Directorate.
Credit: PTI File Photo
New Delhi: Digital devices, Rs 1.5 crore in cash and documents were seized following searches carried out in a money-laundering case linked to an alleged fraud in land acquired by the Karnataka Industrial Area Development Board (KIADB) for projects like the Hubli airport and IIT-Dharwad, the ED said on Tuesday.
The raids were carried out on August 9-10 at a dozen premises in Bengaluru and Dharwad, including at the KIADB head office in Bengaluru and zonal office in Dharwad.
The money-laundering case stems from an FIR lodged by the Vidyagiri police station in Dharwad under various Indian Penal Code (IPC) sections against "main accused" V D Sajjan (a former special land acquisition officer of the KIADB-Dharwad) and others. The police case was later transferred to the CID, Dharwad.
It was alleged in the FIR and chargesheet that Sajjan and other KIADB-Dharwad officials conspired with land brokers and sanctioned an amount of Rs 19.99 crore to seven individuals on the pretext of compensation for land acquisition.
However, these individuals were compensated previously, thus causing loss to the government exchequer, the Enforcement Directorate (ED) said.
It alleged that it was found that a total amount of Rs 72.55 crore was siphoned off using the said modus operandi even as it was detected that this was done prior to Sajjan's tenure.
"Evidence on the modus operandi used have been gathered in the form of original payment register, final notification issued by KIADB for acquisition of land, RTGS payment forms prepared in the name of fake land owners etc.
"In addition, it was found that money was being siphoned off through 'malki payments' i.e. payments made for trees, structures etc. in the acquired land," the ED claimed.
The searches led to the recovery of "incriminating" electronic and digital records and documents and Rs 1.5 crore in cash. Bank deposits of Rs 55 lakh in the name of Sajjan have been frozen, the federal agency said.