'There is no fault...': Karnataka HC delivers major blow to Siddaramaiah in MUDA land scam case

The Karnataka High Court has dismissed Chief Minister Siddaramaiah’s plea challenging the Governor’s decision to sanction his prosecution in the alleged Mysuru Urban Development Authority (MUDA) land scam. 

On August 16, Governor Thawarchand Gehlot allowed the proceedings under the Prevention of Corruption Act, 1988, and the Bharatiya Nyaya Sanhita, 2023, following accusations of irregularities in land allocations by MUDA.

The court, presided over by Justice M. Nagaprasanna, upheld the Governor’s decision, stating that it was based on independent judgment. "The order (by the Governor) does not suffer from non-application of mind... There is no fault in the Governor's actions. The facts narrated need investigation. The petition stands dismissed," the court ruled. 

Siddaramaiah’s counsel, senior advocate Abhishek Singhvi, had requested a two-week stay on the order, but the court declined, with Justice Nagaprasanna stating, “I cannot stay my own order.”

The alleged scam revolves around the allocation of compensatory land parcels to BM Parvathi, the Chief Minister’s wife. It is claimed that the value of the 14 premium sites allotted to her in Mysuru far exceeds the land given in exchange, causing a ₹45 crore loss to the state exchequer. 

Siddaramaiah has consistently denied these allegations, maintaining that no illegal decisions were made regarding land grants.

During the hearing, Singhvi argued that the Governor's action was unlawful as it bypassed the state Cabinet’s approval. He contended that “the Governor hasn’t applied his mind” and cannot act without ministerial advice. However, the court dismissed this, affirming that the Governor's sanction was an “independent decision” and did not require Cabinet approval.

The case has drawn significant attention as it involves serious corruption charges, and the High Court’s decision now clears the way for an official investigation into the matter. 

Despite Siddaramaiah’s legal challenges, the court's dismissal of his plea marks a pivotal moment in the unfolding MUDA land scam case.

What is the MUDA scam?

The case involves allegations that compensatory sites were allocated to Siddaramaiah’s wife, B M Parvathi, in a premium area of Mysuru, which had a significantly higher property value compared to the land acquired from her by MUDA. Under a 50:50 ratio scheme, MUDA granted Parvathi plots in exchange for 3.16 acres of her land, where a residential layout was developed.
Land in question belonged  to one Ninga in Kesere Village in Karnataka's Mysore district

• 1968: Ninga's sons transferred rights over 3.16 acres to Mylaraiah.
• September 1992: Preliminary notification issued to acquire the land.
• February 1998: Final notification issued for acquisition.
• May 1998: Land denotified, acquisition process canceled.
• 2001: Denotified land used for Devanur Layout; sites allotted.
• 2003: Land restored to the original owner.
• August 2004: Siddaramaiah’s brother-in-law purchased the land.
• July 2005: Land converted for non-agricultural use.
• October 2010: Land gifted to Siddaramaiah's wife, Parvathi.
• June 2014: Parvathi sought compensation for land use by MUDA.
• December 2017: MUDA agreed to grant alternative sites.
• November 2020: MUDA proposed a 50:50 land compensation scheme.
• January 2022: Parvathi was allotted 14 plots in Vijayanagar 3rd phase.
• October 2023: Government scrapped the 50:50 scheme.
• July 2024: Siddaramaiah claimed ₹62 crore in compensation.
• August 17, 2024: Governor sanctioned investigation into Siddaramaiah.
• August 19, 2024: Siddaramaiah challenged Governor's sanction in court.
• September 24, 2024: Karnataka High Court verdict delivered.