The Enforcement Directorate (ED) today issued notices to Karnataka Chief Minister Siddaramaiah’s wife BM Parvathi and Urban Development Minister Byrathi Suresh, in connection with its investigation into the Mysore Urban Development Authority (Muda) scam, reported India Today. Karnataka CM Siddaramaiah is the prime accused in this case.
The MUDA scam came to the limelight in June 2024, with RTI activists alleging the involvement of politicians and their relatives, including CM's wife Parvathi and his brother BM Mallikarjunaswamy in the case.
In December, ED wrote to the Lokayukta, alleging widespread corruption and money laundering linked to illegal land allotments under Muda, worth over Rs 700 crore in market value.
India Today which had access to the ED's letter revealed that land denotification for non-agricultural purposes was done without proper reasoning, expert analysis, or record review, and proceeded without due deliberation.
Moneycontrol couldn’t verify the development/developments independently.
Siddaramaiah criticised the ED for overstepping its authority in the Muda scam case, and accused it of political motives, further questioning the agency’s intent, as the Lokayukta investigation was already underway.
Meanwhile, Karnataka Leader of the Opposition R Ashok, called it a regular legal process. “As for the legal process, when Yediyurappa was the Chief Minister, notices also came from the CBI, ED, and Lokayukta. It is a regular legal process, not influenced by the state or central government. We are not commenting further on that,” India Today quoted him as saying.
What is the Muda scam?
CM Siddaramaiah's family has been accused of illegally obtaining 14 sites at a prime locality in Mysuru as compensation from the Muda over the alleged illegal encroachment of 3.16 acres of land by the local development authority.
The MUDA had allotted plots to his wife Parvathi under a 50:50 ratio scheme in lieu of her land, where MUDA developed a residential layout.
Under the controversial scheme, MUDA allotted 50 percent of developed land to the land losers instead of undeveloped land acquired from them for forming residential layouts.
BJP leaders have claimed that the MUDA “scam” is of the magnitude of ₹4,000 crore to ₹5,000 crore.
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