Opposition likely to continue attacks on Siddaramaiah in House on MUDA land case
MUDA had acquired Parvathi’s land of about three acres and 16 guntas in Kesare, Mysuru in between 2001 and 2002
The Mysuru Urban Development Authority (MUDA) case that has gained prominence due to allegations involving Karnataka chief minister Siddaramaiah and his wife, Parvathi, involved similar violations for other beneficiaries under the government 50:50 scheme for land acquisition. As the Karnataka assembly’s monsoon session enters the second week, the Opposition is expected to up the attack on the party.
MUDA had acquired Parvathi’s land of about three acres and 16 guntas in Kesare, Mysuru in between 2001 and 2002. In 2021, MUDA allotted her 38,284 sq. ft of residential sites under the 50:50 scheme, designed to compensate land losers. This scheme stipulates that land losers receive 50% of his or her acquired land once developed and the remaining 50% is cash compensation.
“MUDA’s allocation of 14 residential sites in the Vijayanagar 3rd and 4th Stage layouts to Parvathi has raised eyebrows, given the higher market value compared to the Devanur 3rd Stage layout, where her original land was situated,” said a senior officer in the know of the development.
However, the irregularities extend far beyond the case involving CM’s wife, revealing systemic rot and irregularities within the urban development body as per a detailed report submitted by a MUDA technical committee six months ago. Despite the irregularities being pointed out no concrete actions were taken by the government, prompting widespread concern and criticism.
Technical Committee
On November 3, 2023, the technical committee led by the additional director of Karnataka State Town Planning Board, TV Muruli submitted a report to the Urban Development Department highlighting irregularities in implementing the scheme. The report outlined various irregularities such as preferential allocation of land to influential people and recommended actions against responsible officials.
The committee had cited a government circular dated May 4, 2021, that if any urban development authority violates guidelines or rules or laws, under the Karnataka Town and Country Planning (KTCP) Act and the Kannada Urban Development Authorities (KUDA) Act, its commissioner should be held responsible and disciplinary action should be taken against him or her.
“Although the committee report is pending, another committee has been formed, which is controversial. Additionally, there was no action against the then MUDA commissioner, except for his transfer in February, which was cancelled immediately, and again after the recent controversy,” said an officer, aware of the report and didn’t want to be named.
The 50:50 scheme
In the early days of land development, the MUDA compensated farmers and other landowners at market value when acquiring their land. However, after 2005, Mysuru’s real estate showed a boom, which led to developers buying land around the city, making it hard for MUDA to purchase land at affordable prices, to compensate these land losers.
To solve this issue, MUDA introduced a policy granting landowners a portion of the developed land. Initially, MUDA kept 60% of the developed land, giving 40% to the original landowner. By 2015, this ratio changed to a 50:50 split, giving equal shares to both MUDA and the landowners.
The land losers were the owners of the 130 acres of land acquired from Hanchya-Sathgalli A and B Zone and Devanur III Stage layouts. This parcel of land included the plot that belonged to Siddaramaiah’s wife, Parvathi. The urban body developed a total of 8,486 sites in these layouts and distributed them in 2001-02.
Owners of these lands were offered land under 50:50 schemes. Since 2021, over 3,000 alternate sites were allotted in areas such as Vijayanagar, Dattagalli, JP Nagar and RT Nagar – where the value of land was higher than in areas MUDA had developed the layouts, said an official in the know.
Following the irregularities being reported, the state government had appointed a high-level probe on July 1, 2024, into the alleged irregularities in the allotment of sites meant for land losers in MUDA. Additionally, a one-man judicial commission, headed by former Karnataka high court judge PN Desai, was constituted on Saturday. These two new committees have been formed while there has been no action on the 2023 technical committee report.
What report found
Their technical committee probe revealed that several layouts where land had been allocated lacked official approval and did not reserve plots for mandatory public parks and civic facilities among other irregularities.
According to the report, land allotment should have followed the KUDA rules of 2009, which stipulate that sites can only be distributed on a 50:50 basis through a lottery in newly developed areas. “While no new layouts have been formed for over a decade, MUDA gave 50% of sites to landowners in alternative developed areas to compensate for land acquired for layouts developed (or acquired) before 2009. These actions, taken in MUDA meetings on November 6 and 20, 2020, and later, are deemed invalid,” the report said.
Notably, the Devanur third stage, involving 3.16 acres of land owned by the Chief Minister’s wife, was developed in 2000-2001. The government issued an order on March 14, 2023, to halt the distribution of sites on a 50:50 basis in alternative areas until new guidelines were established, as it violated rule 16(1) of the Karnataka Urban Development Rules, 1991. Despite this, MUDA continued these illegal distributions, ignoring the government’s directives.
Illicit and allotment cases
One prominent case involves chief minister Siddaramaiah’s close associate and former Zilla Panchayat member Rakesh Papanna’s great aunt, Nagaratnamma. She received an illegal allotment of alternative accommodation, bypassing government approval processes.
“Rakesh Papanna applied on April 15, 2024, to compensate for his 3.05 acres of land in Hinkal, Mysuru taluk. MUDA granted him sites on June 12, 2024, without following proper procedures,” the report said.
In 1981, the MUDA issued a notification to acquire three acres and 5 guntas of land in survey number 211 of Hinkal village, Mysuru taluk, for the formation of Vijayanagara layout. The landowner, Pappana, rejected the compensation offered and took the matter to court. By 1999, the compensation was set at ₹48,750, but the he still did not accept it and continued the legal battle. The court then directed MUDA to provide appropriate compensation.
On April 15, 2024, Papanna submitted an application to MUDA seeking compensation. On June 12, the MUDA commissioner allocated him sites totalling 36,753 square feet in the Vijayanagara layout. Allegations have surfaced that MUDA should have paid the compensation with interest to the landowner as per court orders.
In October 2023, the government issued a directive stating that alternative sites should not be allotted on a 50:50 basis, citing violation of court order.
Rakesh Pappana could not be reached for a comment on the allegations.
The technical committee also uncovered a case involving the allocation of plots worth approximately 30 crores to an intermediary who had created fake documents, bypassing the rightful allocation of alternative land to the original landowners.
A report from the technical committee, detailing these irregularities said that in the case of Survey No. 81 of Kasaba Hobali Devanur village, Mysore Taluk, no alternative land was allotted to the original landowner, Puttaswamy. Instead, a middleman named Mahendra illicitly created a fake document, presenting the land as his.
Putraswamy applied for the replacement land on November 10, 2020, for the 1 acre 21 guntas of land in Survey No. 81. Subsequently, on March 1, 2021, V Venkatesh purchased the same land and requested a replacement plot on April 4, 2021, during this time the irregularity came to light. The technical committee’s investigation revealed that these transactions and allocations were fraudulent.
Unauthorised approvals
The investigation by the technical committee has uncovered significant irregularities in the development of various layouts. The committee found that many of these layouts lack reserved plots for public parks and civic facilities, and confirmed layout maps are unavailable. Furthermore, the layouts were not officially approved by MUDA.
“The MUDA Special Land Acquisition Officer failed to provide the technical committee with details regarding the government’s permissions for land acquisition, the extent of land acquired, the amount of compensation provided, and the actual area developed into layouts. There is also no information about the compensation for land used without acquisition,” the committee said.
It further added that MUDA has not prepared a comprehensive layout map for the entire area proposed for acquisition in developed estates. According to urban planning rules, at least 15% of the area should be reserved for parks and 10% for civic amenities.
“The technical committee found no evidence that a design map was prepared and officially approved by the authority for the development plan. In some cases, areas designated for parks and civic amenities were left out of land acquisition, and no certified design map was available to verify compliance with clause 16(d) of the Karnataka Urban Plan,” the report further added.
BJP demands resignation
The Bharatiya Janata Party (BJP) has launched a protest against the Karnataka government headed by Siddaramaiah over alleged scams in the Valmiki Scheduled Tribes Development Corporation and the Mysuru Urban Development Authority (MUDA).
Leader of the Opposition, R Ashoka demanded the resignation of the chief minister, saying Siddaramaiah must step down for any fair probe into the scam. The Opposition also rejected the appointment of a single-member commission to probe the irregularities in (MUDA). R. Ashoka alleged, “The Congress government has looted the land reserved for Dalits. Chief Minister Siddaramaiah has lost the moral right to continue in the post and he should resign immediately. The government has gobbled up ₹187 crore of the board. This is a government of looters,” he said.
Karnataka minister Priyank Kharge, however, said that an SIT had been formed to probe the case and that everyone should wait for the report. “The CM and the minister have clearly said that the officials have mishandled these accounts. We have also formed a single judge bench for the MUDA issue, so whatever concern BJP has, it should raise it in the assembly with documents.”