Bengaluru: The Enforcement Directorate (ED), Bengaluru Zonal Office, on Thursday filed a prosecution complaint (chargesheet) against Valmark Realty Holdings Private Limited and 19 other accused, including certain officials of the Bruhat Bengaluru Mahanagara Palike (BBMP), in connection with an alleged fraud involving the illegal acquisition of Transferable Development Rights (TDR) through falsified documents.
According to an official release, the case pertains to the fraudulent procurement and sale of Development Rights Certificates (DRCs) issued by the BBMP.
The ED explained that TDR or DRC refers to an award specifying the built-up area that the owner of a site or plot can either utilise at the same location or transfer elsewhere. These rights are typically granted when land is surrendered free of cost to an urban local body for public purposes such as road widening, recreational zones or other requirements under the Master Plan.
The ED initiated the investigation based on two FIRs registered by the Anti-Corruption Bureau (ACB) in Bengaluru.
According to the chargesheet filed by the ACB, Valmark Realty Holdings Private Limited, represented by its director Rathan Lath, allegedly obtained Development Rights Certificates and later sold the TDR to real estate companies and individuals, earning illegal gains of about Rs 27.68 crore.
The investigation also found that TDR brokers K. Suresh, K. Gautham and their associates allegedly conspired with previous landowners and certain BBMP officials to fraudulently obtain TDR from the civic body.
According to the ED, the accused concealed the fact that the property had already been sold and falsely valued a building at Rs 1.26 crore to secure the illegal issuance of DRCs covering 10,672.14 square metres.
Earlier, the ED conducted searches at nine premises, including the office of Valmark Realty Holdings Private Limited, the residence of its director, and properties linked to builders, brokers and alleged fake TDR applicants.
The searches reportedly revealed the roles played by brokers and former landowners in the alleged fraud.
The investigation has indicated a larger conspiracy in which brokers B.S. Surendranath, K. Gautham and K. Suresh, in collusion with the company and certain BBMP officials, allegedly manipulated land records to obtain TDR benefits.
According to the ED, the accused allegedly arranged for the mutation of RTC records in favour of the heirs of a landowner named Revanna, even though the land in Kowdenahalli had already been converted into a revenue layout with several third-party purchasers in possession.
Officials said agreements and general powers of attorney were used to initiate administrative procedures.
Subsequently, spot mahazars and building valuation reports were prepared, and the land was projected as agricultural land to facilitate the issuance of development rights.
The probe also revealed that K. Suresh and K. Gautham, along with associates, allegedly entered into agreements with individuals named Muniraju and Srinivas to obtain TDR benefits despite them no longer being the legitimate owners of the land.
Powers of attorney were later registered at the Sub-Registrar’s office in Indiranagar to facilitate the procurement of TDR from the BBMP.
The ED further alleged that the land had already been sold and remained vacant, without any structure eligible for TDR benefits.
However, a building located in a neighbouring survey number was falsely projected as being situated on the concerned land to support the recommendation and issuance of Development Rights Certificates.
Investigators also found that the proceeds generated through the sale of TDR were routed through multiple bank accounts before being integrated into real estate purchases and routine business expenses, thereby exhausting the proceeds of crime.
The agency said it is examining similar cases of alleged TDR fraud in other areas notified for road widening by the BBMP.
(IANS)
