MUDA Scam Probe: The MUDA scam exposes the grave issues within the Karnataka State rules regarding urban land, implying that compensatory plots were allocated in an unorganized, irregular manner. Originating from Mysore, the matter includes influential people and has triggered probes by the Lokayukta, Enforcement Directorate and judicial committees, with the possible loss to the state estimated at approximately Rs 3,000-4,000 crore. The decision by Governor Thawar Chand Gehlot to provide sanctions for prosecution against Chief Minister Siddaramaiah has further fueled calls for accountability.
What is MUDA Scam?
This particular scandal is about the Mysore Urban Development Authority (MUDA) and the alleged misuse of a 50:50 scheme, where it has been distributing the best compensatory plots. The most important case is about 3.16 acres of land purchased for Rs 3.24 lakh, which yielded 14 Vijayanagar plots worth around Rs 56 crore to Siddaramaiah’s wife, BM Parvathi and this has been going on from 2020 to 2024.
What is the Full Form of Muda in Karnataka?
Mysore Urban Development Authority (MUDA) is responsible for the planning and site allotments in Mysore and t=it should not be confused with the Mangaluru one. The authority has been criticized for its 50:50 unclear compensatory practices, which go against the rules from 2023.
MUDA Case: What Sparked the Dispute?
According to allegations, politicians and government officials supported their relatives through the 50:50 scheme, where MUDA maintained half the land and offered alternatives. In 2024, RTI revelations showed connections to the family of Siddaramaiah and the ED attached assets worth Rs 300 crore and subsequently another Rs 40 crore. The judicial commission found no direct wrongdoing on the part of the Chief Minister but pointed out systemic fraud.
Which State is Linked to the MUDA Scam?
Only Karnataka with roots in Mysuru (Mysore) and Lokayukta police and courts in Bengaluru to pursue the cases.
Karnataka Sees Second Chief Minister Under Prosecution
Siddaramaiah is the second chief minister to be given a sanction for prosecution, after BJP’s BS Yediyurappa in 2011 for mining scandals. Both had the sanction of the governor as per anti-corruption legislation; Yediyurappa stepped down after the Lokayukta indictment as there were protests, which is what is happening now with BJP-JD(S) demands.
Who is Siddaramaiah
Siddaramaiah, 76, has been leading the Congress in Karnataka since 2023 and he was the chief minister from 2013 to 2018. He is a socialist veteran with roots in JD(S). He refutes all charges of misconduct, claiming that his wife’s activities are justified as compensation for the family land that the party had acquired and then donated in 2010. He even offered to return the land, which was worth Rs 62 crore.
Complete Timeline of MUDA Scam Controversy
- 1959-2004 (Land Origins): Land (3.16 acres in Kesare village) owned by Ninga family and rights relinquished among sons by 1968. MUDA notifications in 1992/1998 denotified in 1998, brother-in-law Mallikarjunaswamy bought in 2004, gifted to Parvathi.
- Dec 2017: MUDA admits using denotified land for Devanur layout and agrees to compensate Parvathi with alternative sites.
- Nov 2020: MUDA approves 50:50 basis (half developed plots) despite scheme scrutiny.
- Oct 2021: Parvathi petitions for sites.
- Jan 2022: 14 plots allotted in upscale Vijayanagar (Rs 56 crore value).
- Oct 2023: Govt scraps 50:50 scheme amid irregularities.
- Dec 2023: Urban dept halts allotments and violations flagged.
- Mar-May 2024: Allotments continue and Lok Sabha code cited as delay excuse.
- Jun 2024: RTI exposes CM wife links, local media reports rackets and 4-member committee formed.
- Jul 4, 2024: Siddaramaiah demands Rs 62 crore compensation.
- Jul 14-15, 2024: Desai Commission (retired HC judge) set up and BJP MLC claims posh sites to wife.
- Jul 18-21, 2024: TJ Abraham files Lokayukta complaint, governor petition, others (Snehamayi Krishna, Pradeep Kumar) follow.
- Jul 24-26, 2024: Assembly speaker denies debate; governor issues show-cause notice to CM.
- Aug 1-3, 2024: Cabinet deems notice illegal and CM denies allegations.
- Aug 3-10, 2024: BJP-JD(S) Bengaluru-Mysuru padayatra demands resignation and CongressÂ
- Aug 16-17, 2024: Governor sanctions prosecution under PC Act Sec 17A and BNSS Sec 218.
- Aug 19, 2024: CM petitions HC challenging sanction.
- Sep 24, 2024: Karnataka HC dismisses plea and case filed in special court.
- Jan 17, 2025: ED attaches Rs 300 crore properties and fingers ex-MUDA chief DB Natesh for allotments.
- Apr 2025: ED disputes Lokayukta report and alleges CM violations.
- Jul 2025: Supreme Court slams ED probe handling.
- Oct 2025: ED attaches additional Rs 40 crore assets.
- Dec 2025: Lokayukta remands ex-MUDA chief in custody.
- Jan 2026: Bengaluru special court accepts Lokayukta ‘clean chit’ report for CM on family allotments.
- Feb 2026: Lokayukta revives 134 cases, issues notices to 40+ allottees and activist Krishna arrested for fake clips.
MUDA Land Irregularities Under Scrutiny
Core issue is the 3.16-acre plot of village land, bought for Rs 3.24 lakh, was exchanged for Rs 56 crore plots via former commissioner DB Natesh. The ED alleges money laundering. The Desai committee recommends that allotments after 2023 be cancelled and the officials be prosecuted. There are no charges yet against the CM.
Activist Arrested in MUDA Case Over Alleged Fake Audio Clips
Complainant Snehamayi Krishna, who had demanded the sanction of the governor, was arrested by the Bengaluru CCB for allegedly preparing a fake audio clip to defame former MUDA chief DB Natesh. The audio clips talk about bribes for promotions, and evidence was found at her residence.
FAQ’s: Muda Scam
What is the MUDA scam?
Irregular 50:50 scheme allotments by Mysore Urban Development Authority, swapping low-value land for prime sites worth crores and causing state losses estimated at Rs 3,000-4,000 crore.
What is the Full form of MUDA?
Mysore Urban Development Authority, responsible for urban planning and site allocations in Mysuru, Karnataka.
Core allegation against Siddaramaiah?
His wife, BM Parvathi, got 14 Vijayanagar plots (Rs 56 crore) for 3.16 acres acquired by MUDA for Rs 3.24 lakh.
Who sanctioned CM’s prosecution?
Governor Thawar Chand Gehlot, under Prevention of Corruption Act 1988 and Bharatiya Nagarik Suraksha Sanhita 2023.
When did controversy erupt?
RTIs in June 2024 exposed links; probes began July 2024 after activist complaints.
Latest probe status as of Feb 2026?
Lokayukta restarted 134 cases, issued notices to 40+ allottees; Bengaluru court accepted ‘clean chit’ report for CM.
ED’s involvement?
Attached Rs 300 crore (later Rs 40 crore more) properties; probed ex-MUDA chief DB Natesh for laundering.
Has Siddaramaiah resigned?
No, despite BJP-JD(S) demands; he denies wrongdoing, claims legitimate compensation.
Activist Snehamayi Krishna’s role?
Key complainant pushing governor sanction; arrested for fake audio clips defaming ex-MUDA chief.[web:query_context]
Desai Commission findings?
No direct CM illegality in family allotments, but systemic 50:50 scam; recommended canceling post-2023 sites.
What triggered the governor’s sanction?
Petitions by activists like TJ Abraham, citing corruption in Parvatni’s allotments.
