What is MUDA scam and what’s next for Siddaramaiah after Karnataka HC verdict

Siddaramaiah had challenged legality of Governor's nod to prosecute him

The Karnataka High Court on Tuesday dismissed Chief Minister Siddaramaiah’s plea challenging Governor Thaawarchand Gehlot's nod to an investigation against him over alleged Mysuru Urban Development Authority (MUDA) land case.

The court said the Governor can take “independent decisions if exceptional circumstances arise” and his order “does not suffer from non-application of mind”.

The controversy revolves around the alleged irregularities in the allotment of compensatory sites. In July, three activists, T J Abraham, Snehamayi Krishna, and Pradeep Kumar, approached the Governor for sanction to file complaints against the CM.

They alleged that Siddaramaiah’s wife Parvathi received 14 housing sites from MUDA in exchange for a 3.16-acre plot that was “illegally” acquired in 2021 during the previous BJP regime. This allegedly resulted in a Rs. 55.80 crore loss for the state. The plots were allotted to Parvathi by MUDA under the 50:50 ratio scheme.

The case dates back to 23 years ago when land from a Kesere villager named Ninga was officially acquired. Here is a timeline of the case.

1998: The land was denotified from the acquisition process.

2001: The land was utilised to form the third phase of the Devanur Layout, while sites were allotted.

November 2003: Land was restored in the name of its original owner.

August 2004: Mallikarjunaswamy, brother-in-law of Siddaramaiah, purchased 3.16 acres.

July 2005: Mallikarjunaswamy’s land was converted for non-agricultural use.

October 2010: The land was gifted by Mallikarjunaswamy to his sister, Parvathi.

2011-2013: MUDA “illegally” acquired Parvathi’s land parcel and distributed sites, developing a park and roads.

2014: Parvati applied for compensation from MUDA.

2017: MUDA admitted using the denotified land for the layout and decided to grant alternative sites to Siddaramaiah’s wife.

2020: MUDA agreed to award alternative sites on a 50:50 basis.

2021: Parvathi sought alternative sites as compensation.

2022: Parvathi was allotted 14 plots in Vijayanagar.

2023: The Karnataka government scrapped the 50:50 scheme.

July 4, 2024: Siddaramaiah sought Rs 62 crore compensation.

July 14, 2024: The state government set up a one-man inquiry commission to investigate the matter.

July 24, 2024: Karnataka Speaker UT Khader denied permission to discuss the alleged MUDA “scam” in the state Assembly.

July 26, 2024: The Governor issued a show-cause notice to Siddaramaiah.

August 1, 2024: The state cabinet urged the Governor to withdraw the show-cause notice to the CM.

August 3, 2024: Siddaramaiah responded to the Governor's notice and denied all the allegations.

August 16, 2024: The Governor granted sanction for an investigation against the CM.

August 19, 2024: Siddaramaiah filed a plea in the Karnataka High Court challenging the Governor's sanction for prosecution.

September 24, 2024: The Karnataka High Court dismissed Siddaramaiah's  petition.

After the high court setback, Siddaramaiah can be booked for corruption and summoned for questioning. The Karnataka chief minister can appeal against the high court order in the Supreme Court.

BJP has called for Siddaramaiah's immediate resignation. Following the verdict, Union minister Pralhad Joshi said it was a slap on the Congress government and asked Siddaramaiah to step down from his post.

The ruling may also intensify the simmering factionalism within the Congress itself.

Siddaramaiah has been locked in an intense power tussle with deputy chief minister DK Shivakumar. A section of Congress leaders could call for Siddaramaiah's resignation as the chief minister fights a long legal battle.

Meanwhile, Siddaramaiah has said that he will decide on his next course of action and legal fight after consulting legal experts and party leaders. "I still say I have done no wrong," he said.

Accusing BJP and JD(S) of "conspiracy, misuse of Raj Bhavan", the CM said he will not be afraid of them as the people of the state are with him and he and his party have their blessings.