The Enforcement Directorate in Bengaluru has filed a chargesheet against Valmark Realty Holdings Private Limited and 19 others, including officials from the Bruhat Bengaluru Mahanagara Palike, for an alleged fraud related to the illegal acquisition of Transferable Development Rights (TDR). These rights involve the built-up area that a site owner can use or transfer, granted when land is surrendered for public purposes. The case revolves around the fraudulent procurement and sale of Development Rights Certificates issued by the BBMP.
The investigation, initiated based on FIRs by the Anti-Corruption Bureau in Bengaluru, revealed that Valmark Realty Holdings allegedly obtained Development Rights Certificates and sold the TDR to real estate entities and individuals, resulting in illegal gains of approximately Rs 27.68 crore. TDR brokers and certain BBMP officials were found to have conspired to fraudulently obtain TDR from the civic body by concealing property sales and manipulating land records.
The accused are alleged to have falsely valued a building to secure the illegal issuance of DRCs covering over 10,000 square meters. The ED conducted searches at various premises, uncovering the roles of brokers and former landowners in the scheme. The investigation suggests a broader conspiracy involving brokers and certain BBMP officials manipulating land records to obtain TDR benefits through fraudulent means.
The probe also found instances where individuals who were no longer legitimate landowners were involved in agreements to obtain TDR benefits. The agency alleges that proceeds from the TDR sale were channeled through multiple bank accounts for real estate purchases and business expenses. The ED is looking into similar cases of alleged TDR fraud in other areas designated for road widening by the BBMP.
