MUDA Scam Probe: Karnataka CM Siddaramaiah faces prosecution in MUDA scam over wife's 14 prime plots worth Rs 56Cr, replacing 3.2-acre land. Governor sanctioned probe and ED attached assets.
CM Siddaramaiah's prosecution in the MUDA land allotment irregularities (Photo: X)
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.
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.
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.
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.
Only Karnataka with roots in Mysuru (Mysore) and Lokayukta police and courts in Bengaluru to pursue the cases.
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.
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.
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.
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.
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.
