BENGALURU/DHARWAD: The Enforcement Directorate (ED) has arrested Ravi Yallappa Kurbett in connection with the ‘double compensation’ scam involving the Karnataka Industrial Area Development Board (KIADB) in Dharwad. This is the third arrest in the ongoing investigation into alleged money laundering and land compensation fraud.
Kurbett was taken into custody on July 8 and presented before the Third Additional District and Sessions Judge (PMLA) in Mangaluru on July 9, where the court granted the ED seven days of custodial interrogation.
The scam, which came to light earlier in 2024, led to the arrest of V.D. Sajjan, a retired Special Land Acquisition Officer, identified as the mastermind behind the operation. Sajjan and his associates are accused of facilitating the release of duplicate compensation payments for land acquisition—sometimes in the name of individuals who had already received compensation, or who were deceased.
According to the ED, Ravi Kurbett was actively involved in this fraudulent process and was a major beneficiary of the proceeds of crime (POC). He is alleged to have used the illegally obtained funds to purchase immovable assets, both in his own name and in the names of his relatives, as well as for personal expenditures.
The ED has so far attached properties worth ₹13 crore linked to the scam. Officials describe the modus operandi as “ingenious,” with deep collusion between KIADB officials and bank personnel.
The investigation continues under the Prevention of Money Laundering Act (PMLA), 2002, with more arrests and property seizures likely.