Bengaluru, March 12: The Enforcement Directorate’s regional office in Bengaluru has filed a prosecution petition against M/s Walmark Realty Holdings Private Limited (VRHPL) and 19 other entities in connection with the TDR scam. This case also implicates several officials from the BBMP.
TDR, or Transfer of Development Rights, is a certificate indicating the built-up area allocated to a property owner. This area can be sold or utilized elsewhere. The land is acquired free of charge by urban local bodies for public use, such as road widening and recreational areas, according to the master plan.
The ED initiated this investigation based on an FIR lodged by the ACB in Bengaluru. According to the FIR’s charge sheet, VRHPL’s director, Ratan Lath, sold TDRs to real estate companies and individuals after obtaining the DRC, resulting in an illegal profit of approximately ₹27.68 crores.
The charge sheet further reveals that TDR brokers Suresh, K. Gautam, and their associates conspired with certain BBMP officials and landowners. They concealed the fact that the land had already been sold, misrepresenting the building price as ₹1.26 crores, which led to the issuance of DRCs for a total of 10,672.14 square meters.
Previously, the ED conducted raids at nine locations, including VRHPL’s office, targeting its director and several builders, brokers, and counterfeit TDR bonds. This investigation uncovered the involvement of brokers B.S. Surendranath, K. Gautam, and K. Suresh, who collaborated with BBMP officials to file mutations for land in Kaudenahalli under the names of Revanna’s heirs, despite the land having been sold to multiple laborers. They utilized general power of attorney and agreements for this purpose.
The investigation also revealed that K. Suresh and K. Gautam entered into agreements with Muniraju and Srinivas to obtain TDR benefits, even though they were not the legitimate owners of the land. The power of attorney was registered at the Indiranagar sub-registrar’s office to secure TDR from BBMP. It was discovered that the land had already been sold and lacked any eligible structure, yet development certification was fraudulently issued for buildings constructed on adjacent land.
Additionally, the investigation found that the income generated from TDRs was funneled through various channels into real estate purchases and general expenditures, facilitating the use of proceeds from the crime.
The TDR scam has also been identified in several other locations where BBMP declared land for road widening, and investigations are ongoing.
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