Directorate of Enforcement (ED), Bengaluru Zonal Office has issued a Provisional Attachment Order on 14/08/2025 in the case of TDR scam involving M/s. Valmark Realty Holdings Private Limited (VRHPL) and certain BBMP officials, worth Rs 4.06 Crore (approx.) which includes immovable properties such as land and flats, belonging to TDR brokers and fake owners. TDR/DRC means an award specifying the Built- Up Area (BUA), an owner of a site or plot can either sell or utilize – in-situ / elsewhere, in lieu of the land foregone on account of compulsory acquisition of land free of cost by the Urban Local Body, required to be set apart for public purpose as per the Master Plan or for road widening, recreational use zone, etc.
ED initiated investigation on the basis of FIR registered by ACB. As per the Chargesheet filed by ACB in FIR, the accused company represented by its Director, Ratan Lath, after obtaining the DRCs, sold the TDR to real estate companies and individuals, earning a total illegal gain of Rs. 27.68 Crore (approx.).
Earlier, ED, BGZO conducted searches at 9 premises including the office of M/s Valmark Realty Holdings Private Limited, its director and certain builders, brokers, and fake TDR applicants in connection with a scam involving fraudulent issuance of TDRs which revealed the exact role of the TDR brokers and previous owners. Incriminating materials seized under Section 17 of PMLA confirm the distribution of these Proceeds of Crime (POC), VRHPL retained Rs. 17.47 Crore, while brokers Surendranath, Gautham and Suresh pocketed Rs 3.50 Crore, Rs 3.36 Crore and Rs 3.35 Crore respectively, and previous owner Late Shri Revanna’s heirs received about Rs 2.7 Crore from VRHPL’s share of the POC. The investigation further revealed that that these receipts were layered through multiple accounts before being integrated into real‑estate acquisitions and routine business expenses, thereby exhausting the said POC.
Investigation conducted so far discloses a concerted conspiracy whereby brokers B.S. Surendranath, K. Gautham and K. Suresh, acting with VRHPL and BBMP officials, procured mutation in favour of previous owners despite the land having long been converted into a revenue layout with numerous third‑party purchasers in possession. Grossly inflated TDRs on strength of fabricated mahazars and valuation reports, were issued by BBMP without any attempt to take actual possession of the land in violation of several circulars issued by BBMP.
In this way, TDR fraud has been conducted at several other such sites notified for road widening and other public purposes by BBMP, which are further being examined.
