The Enforcement Directorate (ED) has provisionally attached assets worth more than ₹4 crore in connection with a Transferable Development Rights (TDR) fraud case involving Valmark Realty Holdings Private Limited (VRHPL) and certain officials of the Bruhat Bengaluru Mahanagara Palike (BBMP). The scam, which allegedly caused illegal gains running into several crores, highlights deep-rooted irregularities in Bengaluru’s urban development practices.
How the TDR Scam Worked
TDR certificates allow landowners to surrender property free of cost for public purposes, such as road widening or recreation zones, in return for the right to build elsewhere. According to investigators, VRHPL, represented by its director Ratan Lath, fraudulently obtained these certificates and sold them to real estate companies and individuals, amassing illegal profits of around ₹27.7 crore.
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The attached assets include land and flats belonging to fake owners and TDR brokers. Earlier, ED had searched nine premises, including VRHPL’s office, the director’s residence, and multiple properties linked to builders and intermediaries. The searches revealed that several brokers and applicants had fabricated ownership records to obtain inflated TDRs.
Distribution of Proceeds and Conspiracy Allegations
ED findings under the Prevention of Money Laundering Act (PMLA), 2002, revealed that VRHPL retained nearly ₹17.5 crore, while brokers BS Surendranath, K. Gautham, and K. Suresh received ₹3.5 crore, ₹3.4 crore, and ₹3.3 crore, respectively. Additionally, heirs of a previous landowner, Revanna, collected ₹2.7 crore from VRHPL’s share.
Officials said the money was routed through several accounts before being spent on real estate purchases and business expenses. Investigators also pointed to collusion between VRHPL, brokers, and BBMP officials, who allegedly approved fraudulent mutations in favour of owners despite the lands being converted into revenue layouts and sold to third parties. ED further noted that BBMP issued grossly inflated TDRs based on fabricated valuation reports and mahazars, often without taking possession of the land. Similar fraudulent practices at other notified public sites are also under scrutiny.
The agency confirmed that the probe is ongoing and more properties linked to the scam may be seized as evidence of widespread misuse of Bengaluru’s TDR policy emerges.
