MUDA ‘Scam’: Lokayukta registers FIR against Karnataka Chief Minister Siddaramaiah and others

The Lokayukta police have lodged an FIR against Karnataka Chief Minister Siddaramaiah as part of investigation into an alleged scam at the Mysuru Urban Development Authority (MUDA). The FIR was lodged as per the order of the Special People’s Representative Court and names Siddaramaiah as the main accused and his wife Parvathy and Bamaida Mallikarjunaswamy as co-accused.

There were allegations of irregularities and misuse of office in MUDA by Siddaramaiah during his previous tenure as CM of Karnataka.

On September 25, a special court ordered Lokayukta police probe against Siddaramaiah in connection with the matter.

Karnataka Governor Thawar Chand Gehlot has launched an investigation against Siddaramaiah over alleged irregularities in the allotment of 14 sites to his wife, BM Parvathi, by MUDA after concerns emerged over the CM’s involvement.

The court directed the Lokayukta Police Commissioner to invoke provisions relating to prevention of corruption, prohibition of benami properties and land grabbing under various laws. Further, the Superintendent of Police has been directed to submit the inquiry report within three months.

On September 24, the Karnataka High Court rejected Siddaramaiah’s challenge to the legality of the governor’s consent to an inquiry against him in the MUDA case.

Siddaramaiah has reiterated his stance that he will not resign as CM despite the mounting pressure. “I didn’t do anything wrong. This is the first time a political case has been registered against me. This is a political case, please underline it,” he said.

The BJP-led opposition and some activists have alleged that Siddaramaiah and his wife Parvathi benefited from an “illegal” compensation land deal by MUDA, putting the alleged irregularities at Rs 4,000 crore.

MUDA fraud allegations

The broader case relates to alleged violations of MUDA whereby several individuals were given more alternative sites than they were entitled to in lieu of their land, which was used for the development of large and important areas of Mysuru.

The process took place under a 50:50 system introduced in November 2020. In 2023 it was abolished by Siddaramaiah. Under the system, land losers were entitled to 50 percent of developed land while the other half was retained by Siddaramaiah MUDA.

As the alleged scam came to light in Karnataka, some activists alleged that Siddaramaiah’s wife Parvathi was allotted 14 premium locations in Vijayanagar in 2022 in violation of norms. She received the land as a gift in 2010. However, the land was acquired by MUDA to develop a layout and alternative sites were allotted to the CM’s wife.

The activists and the BJP have alleged that Siddaramaiah’s wife was given alternative properties in places with a higher price of land, making the value of the asset higher than that of the actual property in Kesaru.

Siddaramaiah, however, denied all allegations and said the transfer of the land to his wife was done in accordance with legal procedures. He has also highlighted that the BJP government was in power in 2021 when his wife received the properties.