Karnataka: Institutionalising corruption the Congress way
June 4, 2026
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Home Bharat

Karnataka: Institutionalising corruption the Congress way

A five-acre industrial plot meant for the poor was allocated to Kharge’s Siddhartha Vihara Education Trust at pittance. This has come when Siddaramaiah’s Government is already facing the charge of corruption in Karnataka in the MUDA Scam

IndreshIndresh
Sep 4, 2024, 07:15 pm IST
in Bharat, Special Report
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Congress President Mallikarjun Kharge with his son Priyank Kharge, Minister for Electronics, IT/BT and Rural Development & Panchayat Raj, Karnataka

Congress President Mallikarjun Kharge with his son Priyank Kharge, Minister for Electronics, IT/BT and Rural Development & Panchayat Raj, Karnataka

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The Congress-led Government in Karnataka, often hailed in the media as a pro-poor, pro-Dalit administration, stands accused of orchestrating a series of scams that have not only siphoned off public resources but also betrayed the very communities it vowed to uplift. At the centre of this corruption is Congress’ notorious family-first politics. At the national level, the Sonia family reaps the benefits of corruption, while in Karnataka, Congress leaders’ families get that priority.

Following Siddaramaiah’s MUDA scam, the spotlight now turns to Mallikarjun Kharge and his family, who are next in line to benefit from this dynastic favouritism and self-enrichment. This delves into major scandals that collectively underscore the Karnataka Congress Government’s deep-rooted corruption. Land Allotment to a trust of Kharge family

The scandal came to light when it was revealed that a five-acre industrial plot had been allocated to Siddhartha Vihara Education Trust, controlled by the family of AICC president Mallikarjun Kharge. This industrial plot is located at Aerospace Park that comes under the Karnataka Industrial Area Development Board (KIADB).

Despite the family’s significant wealth, the land is believed to have been assigned under the Scheduled Caste Reservation Scheme for entrepreneurs and was apparently purchased for a fraction of its market value.

Chalavadi Narayanaswamy, BJP leader in the Karnataka Legislative Council, has accused the Kharge family of abusing political power to amass land at the expense of the State’s poor and marginalised communities. Narayanaswamy has called for the immediate dismissal of Priyank Kharge, Mallikarjuna Kharge’s son and a Cabinet Minister in the Congress Government. He has also demanded that the land be returned to the State.

The BJP demands that Mallikarjun Kharge must immediately resign from his position as Congress Party President, and Priyank Kharge should step down from his ministerial role in the State Government. It has also demanded a thorough CBI investigation into the deal.

Misappropriating Tribal Funds

The Maharshi Valmiki Scheduled Tribes Development Corporation, set up to uplift the Valmiki community by providing housing, education, and employment opportunities, has become a classic case of mismanagement and embezzlement, where funds meant for the tribal community have been allegedly diverted into the coffers of corrupt officials and Congress political eco-system.

B Nagendra, the erstwhile president of the Valmiki Development Corporation and a former Minister, was arrested by the CBI for allegedly transferring Rs 194 crores illegally. He is in judicial custody now.

According to an Enforcement Directorate (ED) report, a staggering Rs 89.62 crore was siphoned of from the Karnataka Maharishi Valmiki ST Development Corporation Limited. The funds were diverted to 18 fake accounts across Andhra Pradesh and Telangana, with subsequent layering done through shell accounts. The investigation revealed that a portion of the diverted funds was used for personal luxuries, including the purchase of a Lamborghini and a significant quantity of liquor, allegedly aimed at influencing  the Lok Sabha elections.

On July 10, 2024, the ED conducted search and seizure operations across 23 locations in four states, unearthing crucial evidence that tied B Nagendra and Basanagouda Daddal, the Chairman of the Corporation, to the scam. Incriminating documents linking them to the manipulation of funds during the election period were recovered by the agency.

When the fraud came to light, Valmiki Development Corporation Superintendent S Chandra Shekaran committed suicide (on May 26). In his suicide note he gave details of how he was pressurised by politicians.

This scandal is not just a case of financial misappropriation but a stark betrayal of the trust that the Valmiki community had placed in the state government.

MUDA Scam

Dating back to 2004, the MUDA scam involves the illegal transfer and sale of Government land in Mysuru. The land meant for public use was given away to private developers at throwaway prices. The controversy centres around the alleged irregularities in the allocation of compensatory sites. At the core of the scam is a 3.2-acre parcel of land gifted to the Chief Minister’s wife, Parvathi, by her brother Mallikarjunaswamy in 2010. After the land was acquired by MUDA, Parvathi sought compensation and was subsequently allotted 14 plots, reportedly far more valuable than the original land. Opposition parties estimate the scam could be worth anywhere between Rs 3,000-Rs 4,000 crore.

According to RTI worker Gangaraju, approximately Rs 4,000 crore worth of corruption has taken place in MUDA alone. Interestingly, State CM Siddaramaiah is also one of the beneficiaries of the MUDA scam. The RTI workers filed a complaint with the Governor, who gave permission to prosecute Siddaramaiah. The Opposition BJP has alleged that the CM’s relative bought the land in 2004, without any documentation of sale transactions. It is evident that the Congress leader’s relative purchased land that had already been converted into house sites and then reconverted the land with the help of corrupt officers or by pressuring them.

Siddaramaiah’s alleged involvement in the MUDA
scam nees to be probed

These scandals are not isolated incidents but part of a broader pattern of corruption within MUDA. The authority has been accused of selling prime land parcels at throwaway prices to politically connected individuals, while genuine applicants, including economically weaker sections, have been left waiting for years. The Congress Government’s failure to address these issues has only deepened public distrust, with many accusing it of being hand in glove with the corrupt officials and real estate mafia. What’s unfolding in Karnataka exemplifies the Congress Party’s standard template of self-serving politics. Their governance consistently follows a deeply-entrenched pattern of deceit and corruption. The scam-ridden Congress often engages in spreading disinformation, planting false narratives, and making unachievable promises to manipulate public opinion and secure votes. Corruption is like the bloodline of the party, indulging in scams, looting the exchequer, and orchestrating irreversible deals for party benefits a norm. The public funds are often diverted to support Congress party’s agendas or election expenses. Additionally, the party entrenches dynasty politics, concentrating power and resources among family members and close associates, thereby undermining democratic institutions and stifling meritocracy.

As the State gears up for the next round of local body elections, it is imperative that the electorate holds the Congress Government accountable for its actions. The scandals that have plagued the state are a stark reminder of the need for a government that is not just pro-poor and pro-Dalit in rhetoric but in action too. Earlier this month, from August 4 to 11, BJP, in alliance with the Janata Dal (Secular) (JDS), organised a week-long padayatra from Kengeri in Bengaluru to Mysore. This protest was also aimed at pressuring Siddaramaiah to step down amidst the ongoing controversies.

The BJP has been intensifying its protests against Siddaramaiah Government Following a series of demonstrations, including walkouts in the state Assembly, the BJP is now contemplating to escalate its protest by taking it to the national Capital, Delhi.

The courts are set to review whether to permit an investigation into Siddaramaiah’s alleged involvement in the MUDA scam. This decision, critical as it is, will influence the BJP’s next step, particularly their planned protest. If the court rules to proceed, the BJP is expected to mobilise a significant protest in the first week of September. The party leadership is closely monitoring the situation, with final plans contingent on the court’s ruling. A senior BJP leader has indicated that the protest will likely feature BJP MPs, MLAs, and other prominent figures, all demanding Siddaramaiah’s resignation in response to the scandal.

Topics: Maharshi ValmikiAICC PresidentCongresGovernment in KarnatakaLok Sabha elections
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