Karnataka Orders Cancellation of 1100 MUDA 50:50 Scheme Site Allotments

Karnataka has ordered MUDA site cancellations.

Around 1100 MUDA sites are affected.

The cancelled sites are worth about Rs 2000 crore.

The Karnataka government has taken a major decision in the long running MUDA controversy by ordering the cancellation of around 1100 alternative sites allotted under the 50:50 scheme. The properties are estimated to be worth more than Rs 2000 crore.

The order follows recommendations from a single member inquiry commission and a report submitted by a high level technical committee. The government has directed that allotments made in violation of its March 14, 2023 directions be cancelled with immediate effect.

The decision concerns alternative sites allotted by the Mysuru Urban Development Authority under the 50:50 arrangement. The scheme had become a major political issue in Karnataka following allegations of irregularities in site allotments.

The government has also laid out steps for cases where the sites have already been registered. Local authorities have been instructed to prevent further khata transfers until appropriate government directions are issued.

Where sale deeds have already been registered, the concerned authorities have been directed to approach the civil court for cancellation of the documents. Officials have also been told not to issue further sale deeds until the government provides additional guidelines.

The situation becomes more complicated where khata entries have already been completed. In such cases, local bodies have been asked to take action according to the applicable provisions of Karnataka’s municipal and local governance laws.

Officials have been instructed to submit compliance reports to the government after carrying out the required action. The government has also warned that failure to follow the directions could result in action against responsible officials.

The cancellation order comes at a significant point in the wider MUDA controversy. Just days earlier, activist Snehamayi Krishna had challenged the acceptance of a Lokayukta police closure report in the alleged MUDA case before the Karnataka High Court.

Krishna welcomed the government’s latest decision and described it as an important development in his campaign over the disputed allotments. He said he would continue his efforts until the sites covered by the 50:50 allotments are returned to MUDA.

For existing site holders, the practical impact will depend on the status of each individual property, including registration and khata records. The government’s directions indicate that further legal and administrative steps may be required before the cancellation process is completed.