Karnataka’s MUDA ‘Scam’: Historical Context and Current Allegations

Karnataka Chief Minister Siddaramaiah is currently facing scrutiny over the Mysuru Urban Development Authority (MUDA) scam. This controversy follows the resignation of B Nagendra, a minister accused of illegal money transfers from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited. The opposition BJP has accused MUDA of illegally allotting an alternative site to Siddaramaiah’s wife, Parvati.

Historical Context

The MUDA scam revolves around the 50:50 scheme, which was introduced in 2009. Under this scheme, landowners who lost their land for the development of layouts were entitled to 50% of the developed land. This translates to approximately nine developed plots of 30’x40’ dimensions per acre, which the landowners could sell at market rates. The scheme was scrapped in 2020 by the BJP government, but MUDA continued to implement it without seeking permission from the then BJP administration.

Current Allegations

Despite government orders in the last six months directing MUDA to halt the allotment of sites under the 50:50 scheme until clear guidelines were issued, the distribution of sites continued. A government order on July 1 initiated an inquiry, suspecting that sites were being allotted to influential people and real estate agents rather than eligible beneficiaries.

The inquiry committee, led by Commissioner of Urban Development Authorities Venkatachalapathi R., has been given 15 days to submit a report, expected by July 15. Urban Development Minister Byrati Suresh has already transferred four officers, including MUDA Commissioner Dinesh Kumar.

Issues with the 50:50 Scheme

The primary allegation is that sites were illegally awarded to individuals falsely claiming to be land losers. Middlemen and MUDA officials are suspected of being involved in the scam. For instance, a June 15, 2024 order revealed that then MUDA Commissioner Dinesh Kumar awarded 98,206 sq. ft of developed land to the heir of the original owner of 8.14 acres acquired for the development of Gokulam layout, a process that began in 1968. In some cases, land-losers received sites far exceeding their entitlement.

CM Siddaramaiah’s Involvement

RTI activist Gangaraju alleged that after MUDA developed the Devanur layout on land belonging to Siddaramaiah’s wife, she received an alternative site in Vijayanagar, where land prices were higher. This was done despite the availability of sites in the developed Devanur layout. Siddaramaiah defended himself, stating that MUDA allotted sites in Vijayanagar because no sites were available in Devanur 3rd Stage layout. He clarified that his brother-in-law Mallikarjuna had purchased the land in 1996 and gifted it to his sister Parvati. He added that MUDA did not acquire the entire land but created and sold plots, depriving Parvati of her property.

Summary

• MUDA 50:50 Scheme: Introduced in 2009, scrapped in 2020, but continued without permission.
• Allegations: Illegal allotment of sites to influential people and real estate agents.
• Inquiry: Initiated on July 1, report expected by July 15.
• Key Figures: CM Siddaramaiah, his wife Parvati, and MUDA officials.
• Opposition: BJP demands CM’s resignation and a CBI inquiry.
• Defense: Siddaramaiah claims no involvement and questions the basis for his resignation.

This summary provides a comprehensive overview of the MUDA scam, its historical context, and the current allegations, aiding students in understanding the complexities of the issue.