EXCLUSIVE: Rs 100-crore land scam uncovered in BEML Employees’ Cooperative Society

A massive land scam involving over Rs 100 crore has come to light in the BEML Employee’s Cooperative Society (BECS), revealing shocking levels of corruption, manipulation, and betrayal of trust. An exclusive investigation by NewsFirst has unearthed a deep-rooted conspiracy by several former office-bearers of the society, including presidents and directors who are accused of swindling land, forging documents, and selling sites meant for genuine members to private buyers for crores of rupees.

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It began in 2002: Hopes raised, funds deposited

The scam dates back to September 2, 2003, when BECS issued a notification for developing a residential layout. Hundreds of employees deposited advance amounts, trusting that they would receive residential plots in the upcoming layout. The society began acquiring land in villages under the KR Puram jurisdiction, including Thanisandra, Geddalahalli, Hennur, Byrathi Khane, and Amani, totaling hundreds of crores.

Personal gains: Lands registered under private names

However, 79 acres of land were not registered under the society’s name but instead under the personal names of the office-bearers, J Munnagappa, H M Kumar, M Huchegowda, and Doddaswamy Gowda. These individuals later used their position to falsely claim ownership and benefit from the released plots.

BDA acquisition and misuse of land return policy

By 2004, the acquired lands were taken under BDA (Bangalore Development Authority) through a government notification. Although a GPA (General Power of Attorney) was created in favor of the society in 2005, it was canceled in 2017, and the same directors then started claiming the land as their own.

Under the 2011 Bangalore Land Acquisition Act, BDA is mandated to return 40% of developed land to the original landowners. Exploiting this provision, Munnagappa and others submitted fake requests in the name of the society but sought release of sites to their personal names and addressed.

182 plots released between 2010-2023 through fraudulent claims

Munnagappa and associates secured the release of 182 plots through false documentation. This laid the groundwork for mass illegal transactions over the following decade.

Presidency of D M Nagesh marked by escalated fraud

After D M Nagesh took charge as the president in August 2018, the manipulation accelerated. Nagesh allegedly authorized the sale of society plots to non-members. In 2020-21, several plots were sold to private parties, with 7 sites each sold by Munnagappa, H M Kumar, and Huchegowda, generating crores in illegal revenue. Nagesh and other directors issued NOCs in exchange for alleged bribes of Rs 6 lakh per site.

Government probe confirms scam; action recommended

The scam was so serious that in 2021, during an assembly session, the State Government ordered an investigation through the Assistant Registrar of Cooperative Societies. The probe revealed massive irregularities in site allotment and deposit handling, leading to a recommendation to dismiss the board under Section 29(c) and file criminal cases through ED and Income Tax departments.

Despite stay orders, illegal sales continued

Despite this, the accused directors secured a stay order from the Cooperation Ministry on July 8, 2024. Ignoring this President Nagesh submitted a letter to BDA on April 24, 2025, supporting absolute land ownership claims of the tainted directors. Subsequently, Munnagappa sold 4 plots to DS Max Properties Pvt Ltd for Rs 5 crore, despite the stay.

Employees still waiting: Only 97 out of 326 allotted plots

Out of 326 eligible BEML employees, only 97 have received plots, 45 of whom were allotted smaller-than-promised sites. A shocking 229 members remain without sites, despite having invested in the society two decades ago.