Bengaluru, July 10
The Directorate of Enforcement (ED), Bengaluru Zonal Office, has arrested the key accused Ravi Yallappa Kurbett in connection with double compensation scam at Karnataka Industrial Area Development Board (KIADB), Dharwad, in the case of V.D. Sajjan and others under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the official statement said on Thursday.
The arrest was made on July 8.
The ED stated, "This scam was perpetrated by retired Special Land Acquisition Officer, Dharwad V.D. Sajjan, in collusion with other accused persons. The arrested person, Ravi Yallappa Kurbett, was produced before the Court of 3rd Additional District and Sessions Judge (PMLA), at Mangaluru on Aug 9. The Court has granted remand of 7 days to ED."
The evidence and documents collected during the course of investigation in this case have indicated active involvement of Ravi Yallappa Kurbett in the comprehensive money laundering scheme perpetrated at KIADB Dharwad, the ED stated.
Ravi Yallappa Kurbett has been a major beneficiary of the Proceeds of the Crime (POC) generated in this scam. He has utilised the POC for the purchase of immovable properties in his name and in the name of his relatives and for personal consumption, the ED said.
It is pertinent to mention that ED has already attached properties amounting to approximately Rs 13 crore in this case earlier, the ED said.
ED investigation under PMLA, 2002 has uncovered the modus operandi used by the accused persons to fraudulently claim and withdraw double compensation from KIADB in the name of persons who had already received compensation or who had already passed away, the ED stated.
Approximately Rs 46 crore was withdrawn in cash from the bank accounts opened using fictitious PANs. Tax deducted at the time of cash withdrawal under section 194-N of the IT Act has been credited to these PANs. Such TDS, which is Proceeds of Crime, has now been provisionally attached.
Applications were again submitted before KIADB for claiming second-time compensation by using fake identities. These illegal second-time compensations were sanctioned by the KIADB officials in collusion with the accused persons. These compensations were credited in the bank accounts opened with fictitious PANs, which were immediately withdrawn in cash with the collusion of bank officials, the ED said.
The illegal compensation obtained through this method was distributed among the accused persons. In some cases, this entire exercise was done in the name of deceased landowners, who had already received full and final compensation, the ED said.