Karnataka HC mulls CBI inquiry into MUDA scam, Siddaramaiah's troubles mount
June 23, 2026
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Home Bharat

Karnataka HC mulls CBI inquiry into MUDA scam, Siddaramaiah’s troubles mount

The Karnataka High Court has reserved its decision to transfer the MUDA land scam investigation to the CBI while extending Lokayukta's deadline for submitting its report. Amid allegations of irregularities, CM Siddaramaiah faces mounting scrutiny, with ED summons adding to his challenges.

IndreshIndresh
Jan 28, 2025, 01:30 pm IST
in Bharat, Karnataka
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The Karnataka High Court has reserved its order on the petition seeking to transfer the investigation of the Mysuru Urban Development Authority (MUDA) land allocation scam to the Central Bureau of Investigation (CBI). In the meantime, the court has extended the deadline for submitting the Lokayukta police’s final report until the order is pronounced.

This development has reportedly created anxiety for Chief Minister Siddaramaiah, who is already under scrutiny after receiving a notice from the Enforcement Directorate (ED) for questioning.

High-Stakes Political Case

The MUDA scam has stirred significant controversy in Karnataka’s political landscape. Initially, the Lokayukta police were tasked with the investigation. However, complainant Snehamayi Krishna filed a petition in the High Court, requesting the probe be transferred to the CBI for an impartial investigation.

Senior advocate Maninder Singh represented the petitioner during the hearing, arguing for the need for a CBI investigation, while senior advocate Abhishek Singhvi defended CM Siddaramaiah. After hearing the arguments, the High Court reserved its decision and extended the Lokayukta’s deadline to submit its report.

Politically motivated  Lokayukta Report

The Lokayukta investigation into the MUDA scam is reportedly complete, with the final report prepared. Sources suggest that the report gives CM Siddaramaiah and his wife, Parvathi, a clean chit. The report indicates that Siddaramaiah played no role in the irregularities. However, the opposition BJP alleged that the report was politically motivated.

However, the report highlights violations committed by officials during the denotification and land conversion processes. These violations allegedly occurred without following proper procedures and legal norms.

The MUDA scam revolves around alleged irregularities in land allocations and conversions. Senior officials are accused of bypassing established norms, causing significant financial losses to the state. The allegations have caused uproar in political circles, with opposition parties demanding transparency and accountability.

Implications for Siddaramaiah

The reserved judgment has added pressure on CM Siddaramaiah, who is already dealing with an ED notice related to a separate investigation. The ongoing scrutiny and anticipation surrounding the High Court’s decision could have far-reaching political ramifications for the Chief Minister and his government.

The Karnataka High Court’s decision on whether to transfer the investigation to the CBI or continue with the Lokayukta will be pivotal in determining the future course of the case. Until then, the extended deadline for the Lokayukta report submission provides some breathing room for all involved parties.

This case continues to be a significant point of contention in Karnataka’s political and legal arenas, with all eyes on the High Court’s forthcoming order.

Complete Details of court arguments

The Karnataka High Court, on January 27, held a crucial hearing on a petition seeking to transfer the Mysuru Urban Development Authority (MUDA) scam investigation to the Central Bureau of Investigation (CBI). The case, which implicates political figures and raises questions about the integrity of state-controlled investigations, saw intense arguments from senior legal representatives.

The petitioner, Snehamayi Krishna, sought a CBI probe, citing concerns over political interference in the investigation being conducted by the Lokayukta police. The Lokayukta’s investigative report on the scam was submitted in a sealed envelope during the proceedings.

Petitioner’s Argument: Justice Demands an Independent Investigation

Senior counsel Maninder Singh, representing Snehamayi Krishna, argued that the current investigation lacks impartiality. He contended that the investigation should not involve local police or teams connected to the accused. Citing precedents from the Supreme Court, Singh emphasized the need for a truly independent team to ensure justice. He pointed out instances in Punjab and Gujarat where independent probes were deemed necessary.

“The Lokayukta police fall under state government control. With political leaders being named in the scam, there is a high likelihood of interference and derailment of the investigation,” Singh said. He also highlighted discrepancies in land allocations and Cabinet notes, calling for transparency.

The Government’s Stand: Lokayukta Is Sufficient

Senior advocate Kapil Sibal, appearing for the state government, opposed the petition, asserting that the Lokayukta is an independent investigative body and does not require CBI intervention. The CBI reports to the central government and is not entirely free from influence. He reminded the court that the Supreme Court had previously labelled the CBI a “caged parrot.”

Sibal also argued that the state government has withdrawn general consent for CBI investigations, questioning its relevance as an impartial body.

CM Siddaramaiah’s Argument: No Need for CBI

Representing Chief Minister Siddaramaiah, senior advocate Abhishek Singhvi argued that This case does not meet the “extraordinary” criteria required for a CBI investigation. The Lokayukta police have begun their probe, and interference at this stage is unwarranted. The petitioners initially sought the Lokayukta’s involvement and are now attempting to undermine the process.

Singhvi also noted that the complainant obtained permission from the governor to conduct the investigation, which is already underway.

Landowner’s Defense: No Criminal Case

Dushyant Dave, representing a key accused, Devaraju, the land owner, argued against a CBI probe, stating Devaraju has no criminal charges against him; the complaint is based on hidden facts and misrepresentation. Devaraju’s freedom is at stake, and the court should consider these implications seriously.

Court’s Observations and Decision

The High Court responded to these arguments by stating that the Lokayukta police’s report would be examined before deciding whether to transfer the case to the CBI.

“Why was a CBI probe sought immediately after the FIR was registered?” the court asked. Maninder Singh clarified that the writ petition had been filed before the FIR was registered, citing delays by the Lokayukta police.

The court denied a request from Advocate General Shashikaran Shetty to adjourn the hearing, emphasizing the urgency of the matter.

Backdrop of the MUDA Scam

The MUDA scam involves allegations of land misuse and fraudulent allocations worth ₹3.26 crore. The scam includes irregularities such as granting expensive plots for minimal compensation and converting non-existent land for personal gains.

The High Court’s decision on whether the CBI will take over the investigation is awaited, with the next hearing scheduled soon.

This case highlights the persistent challenge of ensuring impartial investigations in politically sensitive matters, with the judiciary playing a critical role in upholding justice.

High Court to Hear Petitions Challenging ED Summons  

Separate petitions challenging the Enforcement Directorate (ED) summons issued to Karnataka Chief Minister Siddaramaiah’s wife, Parvathi, and Urban Development Minister Byrathi Suresh in connection with the Mysuru Urban Development Authority (MUDA) case were submitted to the Karnataka High Court.

During a mention on Monday, senior advocate Vikram Hulyalkol, representing the petitioners, requested an urgent hearing before the bench of Justice M. Nagaprasanna. After hearing the counsel, the court agreed to consider the petitions for hearing later in the day.

Details of the Petition

In her petition, Parvathi Siddaramaiah, a senior citizen, explained the circumstances leading to her involvement in the MUDA case. According to the plea, a piece of land in Survey No. 464 in Kesare village, Mysuru, was initially purchased by her brother. The land was donated to Parvathi in 2010 as part of a traditional gifting ritual.

The petition further stated that the land was acquired by MUDA, denotified, and later developed. Multiple requests were made for compensation, following which alternate plots were allocated in developed areas. These alternate plots were released in October 2024.

Despite no financial misuse or connection to illegal transactions, the ED issued summons under the Prevention of Money Laundering Act (PMLA). Parvathi argued that the summons lacked sufficient evidence and violated her fundamental rights. Additionally, she alleged that the complaints and investigations were politically motivated to target her husband, CM Siddaramaiah.

Petition by Minister Byrathi Suresh

Minister Byrathi Suresh also filed a petition seeking to quash the ED summons. He claimed that he had no connection to the allegations in the MUDA case and argued that the summons was arbitrary and baseless. Suresh pointed out that the Lokayukta police were already investigating the case, and his name was not mentioned in the original complaints.

Key Arguments in the Petitions

Both petitioners alleged that the complaints were politically driven and aimed at tarnishing the image of CM Siddaramaiah and his government.  The summons were described as arbitrary and violating basic rights, given the lack of evidence or financial impropriety. Minister Suresh highlighted that the Lokayukta police were already conducting an investigation, making the ED’s involvement redundant and excessive.

Court’s Response and Next Steps

The High Court acknowledged the urgency of the matter and agreed to hear the petitions later in the day. The outcome of this hearing could have significant political and legal implications, particularly given the sensitive nature of the MUDA case and its connection to prominent political figures.

The summons issued to Parvathi Siddaramaiah and Minister Byrathi Suresh add another layer of complexity to the ongoing MUDA controversy, which has already raised questions about land allocation practices and governance in Karnataka.

Topics: CBIKarnataka High CourtCM SiddaramaiahMUDAMUDA ScamMUDA land scamLokayukta policeED
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