Karnataka: Another scam exposed; MUDA distributed 19 sites instead of 2 to a land owner without records
December 5, 2025
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Home International Edition News

Karnataka: Another scam exposed; MUDA distributed 19 sites instead of 2 to a land owner without records

IndreshIndresh
Nov 18, 2024, 09:00 am IST
in News, Politics, Bharat, Karnataka
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Karnataka government led by Chief Minister Siddaramaiah involved in another scam

Karnataka government led by Chief Minister Siddaramaiah involved in another scam

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MYSURU: MUDA has been accused of allotting 19 plots to an individual without clear records of when or how the land was acquired. The land in question originally claimed to belong to a person named Mahendra, was supposedly used by MUDA for development. However, there is no official documentation available to confirm that the land was properly acquired, casting doubts on the transparency of MUDA’s dealings.

Land in Devanur Village Lacking Acquisition Details

Another major concern is the land in Devanur village, where MUDA allegedly acquired land under Survey No. 81/2. Despite claiming ownership, MUDA has no records of the acquisition date or development process. Additionally, land from this village has been allocated under the Vijayanagara 3rd Phase project, yet MUDA cannot provide adequate information regarding the legitimacy of these transactions.

Unjustified Allocation of 19 Plots

MUDA has been accused of allotting 19 plots in a prime city area when only 2 plots were warranted by the initial agreement. According to the purchase deed, the land surrender was part of an incentive scheme that called for two sites—each measuring 3600 square feet (40×60 and 40×30 feet). Instead, a total of 19 plots have been granted, raising concerns about the fairness and transparency of the land allotment process.

 Ongoing Investigations and Pressure on Officials

The accusations against MUDA are growing as investigations by the Lokayukta and Enforcement Directorate intensify. Several individuals with ties to CM Siddaramaiah, including his close aide Mari Gowda, have already been questioned by the ED. The Lokayukta has also been gathering evidence, including testimonies from witnesses, to uncover the full extent of the corruption.

Read More: Karnataka CM Siddaramaiah faces allegations of lying repeatedly in providing 4 per cent reservation to Muslims 

With each passing day, more evidence of irregularities, land mismanagement, and illegal allotments is emerging, further implicating MUDA officials in the scam. The public and authorities alike are now demanding swift action against those involved in this wide-ranging scandal that threatens to undermine public trust in local governance and urban development practices.

MUDA services suspended followed by scam

MUDA Services Suspended Amid Multi-Crore Embezzlement, Local Bodies Now Responsible for Accounts

In the wake of the ongoing multi-crore rupee embezzlement investigation involving the  MUDA  all services, including account collections, were suspended. This disruption led to considerable difficulties for the public, who were unable to access essential services related to revenue accounts. However, in an effort to resolve the issue, Mysore  deputy commissioner  Laxmikant Reddy has intervened by issuing an order to transfer the responsibility for MUDA’s settlement and barangay accounts to local bodies.

 Deputy commissioners  Order to Streamline Services

The suspension of MUDA services had caused a backlog in revenue account management and urban development services, leaving residents in distress. In response,  DC  Laxmikant Reddy has directed that all MUDA-related services, including revenue account collections, be handled by local administrative centers. This includes various local bodies, such as the Mysore Metropolitan Corporation, Municipal Council, Municipality, and Town Panchayat. Going forward, all account-related services will be provided through these local bodies, ensuring that the public continues to receive essential services without further delays.

ED Investigation Uncovers Shocking Allegations

Meanwhile, the Enforcement Directorate (ED) continues its investigation into the massive financial irregularities at MUDA. In a major development, former MUDA officials have made explosive allegations during their inquiry, accusing two important ministers of complicity in the illegal activities. According to their statements, the ministers had been involved in the illegal sharing of land sites in a 50:50 ratio.

The ED is closely following these allegations and is currently verifying the claims against the ministers. The agency is also digging deeper into the records, with the possibility of further charges being filed against the implicated ministers.

In addition, the ED investigation has led to the dismissal of BK Kumar, a contract employee at MUDA, for his involvement in assisting former officials Natesh and Dinesh in their illegal activities. The investigation into former MUDA President Mari Gowda and his associates, including Shivanna, his daughter-in-law, has been completed, with significant evidence gathered by the ED.

As the investigation progresses, further revelations are expected, shedding light on the full extent of the corruption within MUDA and its connections to local political figures. The public and officials are eagerly awaiting the outcome, which may lead to major political ramifications.

Fake documents and bank fraud

A new scandal has emerged involving the MUDA  this time centered around allegations of  financial fraud and embezzlement. The   Save MUDA agitators Forum has accused MUDA officials, outsourced employees, and Bank of Baroda staff of conspiring to cheat the authority out of crores of rupees through false documentation and fraudulent banking practices.

 Fraudulent Transactions and False Documentation

It is alleged that Bank of Baroda branch employees, along with MUDA officials, have been collecting payments from 93 customers for various MUDA revenue department services, but failed to deposit the money into the authority’s account. Instead, the money was allegedly diverted, with false entries created in the system, making it appear as though the payments were made.

According to the   Forum, these individuals exploited bank challans and bank seals to manipulate records, creating a fake back transaction trail to hide their fraudulent activities. The scam has reportedly cost MUDA lakhs of rupees.

Discovery of the Fraud

The case came to light when MUDA’s Finance Department noticed discrepancies in the records. 93 customers had made payments for MUDA services, but their payments had not been credited to the authority’s bank account. Upon investigation, MUDA sent a letter to Bank of Baroda, requesting the deposited amounts to be credited into their account. The bank’s response revealed that 92 of the 93 payments had not been deposited into MUDA’s account, despite having official bank seals indicating the money was paid.

This alarming discovery triggered a preliminary investigation, which unveiled the fraudulent manipulation of bank records and the misuse of bank challans and seals by MUDA and bank staff involved in the scam.

 Previous Scandals and Allegations

This incident adds to the growing list of controversies surrounding MUDA. A land allotment scandal has already brought MUDA into the spotlight, with claims of illegal land distributions and political influence. Chief Minister Siddaramaiah has also been linked to the ongoing investigation, with allegations suggesting his involvement in the land allotment scam. Both Mysore Lokayukta and the Enforcement Directorate (ED) are currently probing these allegations.

FIR Filed Against the Customer

In a twist, MUDA has filed an FIR against a customer, alleging that the individual had forged a bank seal in an attempt to cover up the fraudulent transactions. The complaint was filed by the Tahsildar on November 8, pointing to potential collusion between the customer and MUDA employees.

As the investigation deepens, both the Mysore Lokayukta and the ED are working to uncover the full extent of the fraud. The public, especially the residents affected by the irregularities, are eagerly awaiting further developments in the case. The involvement of high-ranking officials and the scale of the scam suggest that this may be just the tip of the iceberg.

Topics: Chief Minister SiddaramaiahMUDA land scamCongressEnforcement Directorate
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