New Delhi, Oct 6 (PTI) The Enforcement Directorate (ED) on Monday said it has attached fresh assets worth Rs 40 crore in connection with the Karnataka MUDA-linked money laundering investigation.

A provisional order for attaching 34 immovable assets, including some MUDA (Mysuru Urban Development Authority) sites, was issued on October 4 under the provisions of the Prevention of Money Laundering Act (PMLA), they said.

The market value of these assets is Rs 40.08 crore, the federal probe agency said in a statement.

The money laundering case stems from an FIR of the Karnataka Lokayuktha Police.

The agency has issued similar attachment of assets orders in the past too and with this fresh action, properties worth Rs 400 crore have been attached by it as part of this investigation till now.

It had arrested former MUDA Commissioner GT Dinesh Kumar in September and he is currently lodged in jail under judicial custody.

The agency said its probe has found routing and layering of "undue gratification" which was "obtained" by Kumar.

"Such proceeds of crime were used for purchasing immovable properties in the name of relatives/associates of GT Dinesh Kumar. Further investigation also found illegal allotment of 31 MUDA sites by Kumar," it alleged.

The ED claimed that there was a "deep" nexus between MUDA officials and real estate businessmen and "evidence" shows payment of cash for allotment of sites as compensation and approval of layouts.

The MUDA case involves alleged irregularities in land allotted to Parvathi, wife of Karnataka Chief Minister Siddaramaiah.

However, the Supreme Court in July upheld a Karnataka High Court decision to quash ED proceedings against Parvathi in this case.

The Justice P N Desai Commission, constituted by the state government in this case, has also exonerated Siddaramaiah and his family.

The Lokayuktha police has also given a clean chit to Siddaramaiah, Parvathi, and two others, stating that the allegations "could not be proven due to a lack of evidence." PTI NES DV DV

Asset attachment under PMLA: ED provisionally attaches immovable properties in MUDA linked money laundering probe. The Enforcement Directorate issued a provisional order under the Prevention of Money Laundering Act (PMLA) attaching 34 immovable properties, including MUDA sites, alleging routing and layering of undue gratification used to purchase assets in relatives' and associates' names and asserting a nexus between MUDA officials and real estate businessmen involving cash payments for allotments and approvals.