New Delhi, March 12 (UNI) The Enforcement Directorate (ED), Bengaluru Zonal Office, today said that it has filed a chargesheet in a TDR scam involving Valmark Realty Holdings Private Limited (VRHPL) along with 19 other accused, including certain officials of the Bruhat Bengaluru Mahanagara Palike (BBMP).
“TDR/DRC means an award specifying the Built-Up Area (BUA). An owner of a site or plot can either sell or utilise it in-situ or elsewhere in lieu of the land foregone on account of compulsory acquisition of land free-of-cost by the Urban Local Body, which is required to be set apart for public purposes as per the Master Plan or for road widening, recreational use zones, etc.,” an ED official said.
The ED initiated a probe under the Prevention of Money Laundering Act (PMLA) on the basis of an FIR (first information report) registered by the Anti-Corruption Bureau, Bangalore. As per the chargesheet filed by the ACB, the accused company, represented by its Director Ratan Lath, after obtaining the Development Rights Certificates (DRCs), sold the Transferable Development Rights (TDR) to real estate companies and individuals, earning an illegal gain of Rs 27.68 crore.
“Similarly, as per the chargesheet, TDR brokers K. Suresh, K. Gautham and their associates conspired with previous landowners and certain BBMP officials to obtain TDR from BBMP by concealing the fact that the property had already been sold and by falsely valuing a building at approximately Rs 1.26 crore, with illegal issuance of DRCs totalling 10,672.14 square metres,” the ED said.
Earlier, the ED’s Bengaluru Zonal Office conducted searches at nine premises, including the office of Valmark Realty Holdings Private Limited, its director, and certain builders, brokers, and fake TDR applicants. The searches revealed the exact role of the TDR brokers and previous owners.
The investigation so far has disclosed a concerted conspiracy in which brokers B. S. Surendranath, K. Gautham and K. Suresh, acting with VRHPL and BBMP officials, allegedly procured mutation of RTC in favour of Revanna’s heirs despite the land in Survey No. 132, Kowdenahalli, having long been converted into a revenue layout with numerous third-party purchasers in possession.
Agreements and general powers of attorney were allegedly used to initiate administrative processes, following which spot mahazars and building valuations were prepared and the land was treated as agricultural for the purpose of issuing development rights.
The investigation has also revealed that K. Suresh and K. Gautham, along with associates, approached Muniraju and Srinivas and entered into agreements to obtain TDR benefits even though they were no longer the legitimate owners of the land. Powers of attorney were subsequently registered at the Sub-Registrar’s Office, Indiranagar, to facilitate procurement of TDR from BBMP.
It has further been revealed that the land had already been sold and remained vacant without any eligible structure for TDR benefits. A building located in a neighbouring survey number was falsely projected as being situated within the concerned land in order to support the recommendation and issuance of Development Rights Certificates.
The investigation also revealed that the proceeds were layered through multiple accounts before being integrated into real estate acquisitions and routine business expenses, thereby exhausting the proceeds of crime.
The ED said that similar TDR fraud has been carried out at several other sites notified for road widening by BBMP, which are also being examined.
