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What Is Karnataka’s MUDA ‘Scam’? How Were Sites Allotted? Why CM Siddaramaiah Is Facing The Heat – News18

What Is Karnataka’s MUDA ‘Scam’? How Were Sites Allotted? Why CM Siddaramaiah Is Facing The Heat – News18


The BJP in Karnataka has alleged that MUDA illegally allotted an alternative site to Siddaramaiah’s wife Parvati. (File Photo)

Though only one incentive site was meant to be given to land losers along with the compensation, it has been alleged that multiple incentive sites had been given to persons for the same land

Karnataka Chief Minister Siddaramaiah has been embroiled in the Mysuru Urban Development Authority (MUDA) scam that has led to the resignation of minister B Nagendra. The Opposition BJP in the state has alleged that MUDA illegally allotted an alternative site to Siddaramaiah’s wife Parvati.

The latest allegation is under MUDA’s 50:50 scheme, which was introduced in November 2020. Under the scheme, those who lost their land for the development of layouts were entitled to 50% of the developed land. Out of every acre of undeveloped land, 23,000 to 24,000 sq. ft of developed land is available for residential sites while the remaining is set aside for utilities.

The BJP protested outside the CM’s office on Wednesday over the alleged scam, demanding his resignation and CBI inquiry.

Siddaramaiah, however, said on Wednesday his government was investigating the alleged irregularities. He said all sites MUDA allotted had been suspended. He also asked his opponents from the BJP, “what is my role in the irregularity and why should I resign?”

Let’s understand more such alleged irregularities in the scam.

What is MUDA Scam?

It is believed that large-scale irregularities were committed during the allotment of incentive sites. Though only one incentive site was meant to be given to land losers along with the compensation, it has been alleged that multiple incentive sites had been given to persons for the same land.

The distribution of sites continued despite two government orders in the last six months directing MUDA to cancel the allotment of sites to beneficiaries under the 50:50 scheme until clear guidelines were issued. However, the allotment did not stop.

A government order institution an inquiry on July 1 said there was suspicion that rather than providing the sites to eligible beneficiaries, there are complaints that they were allotted to influential people and real estate agents.

The inquiry committee headed by Commissioner, Urban Development Authorities, Venkatachalapathi R., an IAS officer, has given 15 days to submit the report and it is expected to be ready by July 15 when the legislature begins the monsoon session.

Urban Development Minister Byrati Suresh has already transferred four officers, including MUDA Commissioner Dinesh Kumar.

What is Wrong with the 50:50 Scheme?

It has been alleged that the sites were awarded illegally to those claiming to be land losers. Apart from the role of middlemen, the active connivance of MUDA officials has been suspected in the scam.

According to an order dated June 15, 2024 of allotting sites to two land losers, then MUDA Commissioner Dinesh Kumar awarded 98,206 sq. ft of developed land to the heir of the original owner of the 8.14 acres of land that had been acquired by MUDA for the development of Gokulam layout, according to a report by The Hindu. The acquisition proceedings for Gokulam layout in Mysuru started in 1968.

In some instances, land-losers had been allotted sites far in excess of their entitlement, The Hindu report said.

How CM’s Name Cropped Up

According to RTI activist Gangaraju, after MUDA developed the Devanur layout on land belonging to Siddaramaiah’s wife, she received an alternative site in Vijayanagar, one of the neighbourhoods where the land price was higher. This was done even though MUDA had sites at the developed layout that could have been allotted to Parvati.

Siddaramaiah, however, has claimed that MUDA allotted sites at Vijayanagar as sites were not available in Devanur 3rd Stage layout.

In his clarification, the CM said his brother-in-law Mallikarjuna had purchased three acres and 36 guntas of land in 1996 and gifted it to his sister Parvati. He said Muda did not acquire three acres and 36 guntas of land, but created plots and sold them out. He added that after plots were sold by Muda, she was deprived of her property.



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