MUDA scandal big update: 30 sites illegally allotted to single person

MUDA scandal big update: The MUDA (Mysuru Urban Development Authority) scandal continues to be a significant issue in Karnataka, with ongoing investigations and new revelations. MUDA scandal big update: 30 sites illegally allotted to single person.

One of the prominent aspects that have come to light is the alleged distribution of multiple sites to single individuals or entities. A shocking revelation emerged that over 30 sites were allegedly illegally allotted within one month to a high-profile real estate businessman in prestigious areas of Mysuru city. This was done by MUDA officials in collusion, causing a loss of over Rs. 300 crore to MUDA and the State Exchequer.

A social activist, K. Krishna, lodged a complaint with the Lokayukta about this in October 2023, but as of May 2025, little investigation had been conducted into this specific aspect.  The scandal also heavily involves the alleged irregular allotment of 14 plots to B.M. Parvathy, wife of Chief Minister Siddaramaiah, as compensation for acquired land.

While she has offered to return the sites, this case has been a major point of contention, with the Enforcement Directorate (ED) challenging the Lokayukta police’s closure report in this matter. The core of the scam often revolves around MUDA’s “50:50 scheme,” which was intended to compensate landowners with 50% of the developed land in exchange for their undeveloped land.

However, this scheme has been widely criticized for irregularities, including allegations that high-value plots were allotted to intermediaries, dummy owners, or influential individuals, leading to significant financial misconduct and losses to the exchequer.

The ED has provisionally attached properties worth approximately Rs. 400 crore in total related to these irregularities, and their investigations continue. The scandal involves multiple agencies, including the Lokayukta and the Enforcement Directorate, and has led to political controversy, demands for resignations, and ongoing legal battles.

The ED has specifically found that 1,095 plots with a market value exceeding Rs. 700 crore were illegally allotted, often to dummy or benami individuals, with proceeds allegedly exchanged for luxury cars, cash, and other properties.

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