Bengaluru: Nearly two years after a complaint was filed alleging irregularities in the allotment of alternative sites by the Mysuru Urban Development Authority (MUDA), the Lokayukta inquiry is yet to reach its conclusion, with the matter being repeatedly adjourned under the heading of “final consideration”. The prolonged delay has once again come under the spotlight, particularly as the complainant has alleged that the irregular allotments resulted in an estimated Rs 40 crore loss to the State government.
The complaint was filed before the Karnataka Lokayukta in 2024 by BJP leader NR Ramesh against former Chief Minister Siddaramaiah, his wife B.M. Parvathi and four others, alleging abuse of power, corruption and irregularities in the allotment of alternative sites. The complaint was supported by 383 pages of documents and named Siddaramaiah and Parvathi as the first and second respondents respectively, along with Parvathi’s brother B.M. Mallikarjunaswamy, former MUDA Chairman Basavanagouda, former Chairman H.V. Rajeev and former MUDA Commissioner DB Natesh.
The Lokayukta registered the complaint and assigned it to an Additional Inquiry Officer for investigation. However, despite repeated hearings, the inquiry has remained inconclusive. Official records indicate that the matter has come up before the inquiry officer 17 times since July 2024, yet no final findings have been issued.
What has attracted particular attention is that the complaint has been repeatedly adjourned under the category of “final consideration” for more than a year. From May 17, 2025, to July 10, 2026, the matter continued to be listed for final consideration without any decision being pronounced. The latest hearing has now been posted for September 3, 2026, further extending the timeline of the proceedings.
The delay has prompted criticism from the complainant and opposition leaders, who argue that the prolonged pendency has prevented a final determination in a case involving allegations of substantial financial loss to the public exchequer. According to the complaint, the alleged irregular allotment of alternative sites caused a loss of approximately Rs 40 crore to the State government. These allegations, however, remain under inquiry and have not been judicially established.
The issue has acquired renewed political significance following the appointment of Dr Yathindra Siddaramaiah, son of the former Chief Minister, as the State’s Urban Development Minister. Since the Urban Development Department oversees matters relating to MUDA, a citizens’ organisation, Naija Horatagarara Vedike, has submitted a representation to Chief Minister D.K. Shivakumar seeking that Dr Yathindra be relieved of the portfolio, contending that the ongoing proceedings could create a perception of conflict of interest. The State government has not issued any official response to the representation.
The MUDA site allotment controversy had earlier triggered a major political confrontation in Karnataka. The BJP and JD(S) jointly organised a padayatra from Bengaluru to Mysuru demanding an impartial investigation into the allotments. Allegations were also made regarding the handling of official files during the period when the allotments were processed, although these allegations remain politically contested.
Parallel legal proceedings have also continued. Social activist Snehamayi Krishna challenged the acceptance of the Lokayukta Police’s closure report before the Karnataka High Court after the Special Court for MPs and MLAs accepted the police ‘B’ report. In his petition, he sought quashing of the closure report and requested that the investigation be entrusted to an independent agency.
The Karnataka High Court, while hearing the petition on March 26, 2026, issued notices to Siddaramaiah, his wife Parvathi, Mallikarjunaswamy, the original landowner J. Devaraju and other respondents. The High Court proceedings remain pending.
The Enforcement Directorate (ED) has also entered the legal battle by independently challenging the Lokayukta Police’s ‘B’ report before the High Court. The agency has sought judicial scrutiny of the closure report, and its petition is yet to come up for detailed hearing.
During the pendency of the litigation, Parvathi voluntarily surrendered the alternative sites allotted to her back to MUDA. The surrender, however, did not bring the legal proceedings to an end, with both the High Court and Lokayukta matters continuing independently.
Separately, the State government had constituted a one-member commission headed by retired Justice P.N. Desai to examine the controversy. The commission concluded that the allegations against Siddaramaiah and his family were not substantiated and gave them a clean chit. The State Cabinet subsequently accepted the commission’s report.
At the same time, the Justice Desai Commission reportedly identified several procedural and administrative irregularities in MUDA’s functioning and fixed responsibility on certain officials. Acting on those findings, the Urban Development Department issued show-cause notices in February 2026 to former MUDA Commissioners D.B. Natesh and G.T. Dinesh Kumar regarding alleged violations in site allotments.
