Bengaluru Court Accepts Lokayukta Clean Chit for CM Siddaramaiah in MUDA Land Allotment Case
A special court in Bengaluru designated for cases involving elected representatives has formally accepted the closure report submitted by the Karnataka Lokayukta police. This report clears Chief Minister Siddaramaiah, his wife B M Parvathi, his brother-in-law Mallikarjun Swamy, and former landowner J Devaraj of corruption allegations related to housing site allotments by the Mysore Urban Development Authority (MUDA).
Details of the Closure Report and Court Proceedings
The Karnataka Lokayukta police filed what is known as a B report, or closure report, in February 2025. This document cited a significant lack of evidence to substantiate the corruption allegations against the Chief Minister and his family members. The court's acceptance of this report on Wednesday marks a pivotal development in this long-running legal matter.
The allegations originated from a private complaint filed by RTI activist Snehamayi Krishna in 2024. The complaint centered on MUDA's allotment of 14 housing sites to Siddaramaiah's family. This allotment was purportedly made in exchange for a 3.16-acre property that MUDA had "wrongly acquired." Following a political controversy, the Chief Minister's wife returned all 14 sites to MUDA later that same year.
The special court's order stated clearly: "The B Report filed by the Investigating Officer against accused No.1 Sri. Siddaramaiah, accused No.2 Smt. B.M.Parvathi, accused No.3 Sri.Mallikarjuna Swamy and accused No.4 Sri. J.Devaraj, is hereby accepted." The court also dismissed a demand from the RTI activist for contempt-of-court proceedings against the investigating officer over perceived delays.
Ongoing Investigations and Parallel Legal Actions
While this specific case against the CM is closed, the court noted that the larger investigation into alleged widespread corruption within MUDA's land allotment processes in Mysore remains active. The Lokayukta police are continuing their probe into these broader allegations.
Furthermore, the Enforcement Directorate (ED) is separately investigating potential money laundering aspects linked to the MUDA scam. The special court clarified that the ED can intervene in the case only to a "limited extent" as an aggrieved party. Both the RTI activist and the ED had previously challenged the Lokayukta's closure report.
The ED's probe has already led to significant action:
- Provisional attachment of 142 properties valued at approximately Rs 300 crore.
- Filing of a prosecution complaint against former MUDA commissioner G T Dinesh Kumar, who was arrested in September 2025.
- Allegations that Kumar played an instrumental role in a "comprehensive money laundering scheme" during his tenure.
However, it is important to note that properties belonging to the Chief Minister's family were not attached by the ED. The Karnataka High Court and subsequently the Supreme Court have quashed ED summonses to the CM's wife, emphasizing that individuals cannot be compelled to testify under the Prevention of Money Laundering Act (PMLA) without incriminating evidence.
Judicial Commission Findings and Broader Implications
In a related development, a judicial commission headed by retired High Court Judge Justice P N Desai submitted its report in September 2025. This commission was tasked with investigating allegations of corruption and maladministration within MUDA.
The Justice Desai commission reported two key findings:
- It found no wrongdoing in the specific allotment of 14 housing sites to CM Siddaramaiah's family as compensation for the wrongly acquired 3.16 acres.
- It identified large-scale irregularities in MUDA's overall functioning between 2020 and 2024. The commission described the 50:50 compensation scheme as "filled with loopholes" and seemingly devised to benefit illegal claimants, stating it "reeked of a scam." It recommended criminal investigations against MUDA officials and cancellation of certain site allotments.
The court's acceptance of the Lokayukta's clean chit for the Chief Minister and his immediate family brings a measure of closure to one aspect of the complex MUDA case. However, with the Lokayukta's broader probe ongoing and the ED actively pursuing money laundering charges against other officials, the legal and political ramifications of the MUDA land allotment scandal continue to unfold in Karnataka.
