ED Attaches ₹4.06 Crore Assets in Bengaluru TDR Scam Involving Valmark Realty, BBMP Officials, and Brokers; Illegal Gains Touched ₹27.68 Crore
Bengaluru: The Enforcement Directorate (ED) has provisionally attached immovable properties worth ₹4.06 crore in connection with a Transfer of Development Rights (TDR) scam involving Valmark Realty Holdings Private Limited (VRHPL), certain BBMP officials, and TDR brokers. The investigation has uncovered illegal transactions yielding ₹27.68 crore in illicit profits.
According to the ED’s Bengaluru Zonal Office, the attachment order was issued on 14 August 2025, following an ACB FIR against VRHPL Director Ratan Lath and others. As per the charge sheet, the accused sold fake TDR certificates to real estate companies and individuals, pocketing huge profits.
Also Read: Bengaluru: ED Raids Valmark Realty Holdings Company in TDR Scam
Key Findings from the Investigation:
- Fraudulent TDR Issuance: The scam involved fabricated TDRs allegedly used to acquire and sell Built-Up Area (BUA) without following due legal process.
- Seized Evidence: Searches at nine premises revealed ₹17.47 crore in Proceeds of Crime (POC), including ₹3.50 crore pocketed by broker B.S. Surendranath, ₹3.36 crore by K. Gautham, ₹3.35 crore by K. Suresh, and ₹2.7 crore by heirs of Late Shri Revanna.
- Layered Transactions: The illicit funds were routed through multiple accounts to mask their origin before being invested in real estate and other businesses.
- BBMP Collusion: Officials allegedly approved grossly inflated TDRs based on fabricated valuation reports, ignoring circulars and legal requirements to take actual possession of land.
ED’s Observations:
The scam reflects a concerted conspiracy involving property brokers, VRHPL, and BBMP insiders. The fraud exploited BBMP’s road-widening compensation scheme, with mutated land records showing public-acquired lands repurposed into layouts for private sale.
The ED further stated that similar fraudulent TDR transactions may have occurred at other BBMP-notified sites, which are now under examination.
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