The Enforcement Directorate (ED) continued its extensive raids on the Karnataka Industrial Area Development Board (KIADB) offices in Bengaluru and Dharwad through Saturday, following initial operations that began on Friday. The raids are part of an ongoing investigation into an alleged land acquisition scandal related to the Hubballi airport project.
The ED recently registered an Enforcement Case Information Report (ECIR) concerning the scandal. Former chief financial officer Vani and current CFO Prakash were brought to the KIADB headquarters at Khanija Bhavan in Bengaluru for questioning. Simultaneously, officials examined documents and files at the KIADB office in Dharwad. The investigation was initiated based on a complaint filed by a Karnataka Rakshana Vedike activist from Dharwad.
In 2022 and 2023, four FIRs were filed in Dharwad related to the alleged scam. One of these cases has been transferred to the Criminal Investigation Department (CID), while the others remain under local police investigation. The CID has named 14 individuals in its probe, including four KIADB officials and officials from IDBI Bank, Karnataka Vikas Grameena Bank, and Bank of Baroda.
The CID’s investigation revealed that in 2021, KIADB officials and private individuals allegedly conspired to create fraudulent documents, falsely claiming ownership of land already acquired and compensated for by KIADB during the 2011-12 airport project. Since then, at least three additional cases have emerged where private individuals forged documents to claim ownership of KIADB-acquired land and secure additional compensation. This prompted the filing of new FIRs and the registration of an ECIR by the ED.