Karnataka High Court Stays Lokayukta Probe into MUDA Scam, Extends Report Submission Deadline

Karnataka High Court Stays Lokayukta Probe into MUDA Scam, Extends Report Submission Deadline

On Thursday, the Karnataka High Court stayed the Lokayukta investigation into the alleged MUDA scam involving Chief Minister Siddaramaiah’s family. The court cited a petition that seeks a CBI probe into the matter.

Court’s Ruling and Timeline Extension

A bench of Justice M Nagaprasanna stayed the Lokayukta investigation and extended the deadline for submitting the investigation report to January 28, 2025. This extension replaced the original deadline of December 24, 2024, set by a district court on September 25.

Siddaramaiah’s Objections

Despite objections raised by Siddaramaiah’s counsel against interference in the Lokayukta police investigation, the court ruled that the investigation should remain stayed. The bench noted that the matter was under consideration to determine whether the issue should be referred for a CBI probe.

The bench emphasized that the Lokayukta police would not proceed with further investigations until the matter was heard. The court also scheduled the CBI probe petition for hearing on January 15, 2025.

Background of the Case

The petition for a CBI investigation was filed by RTI activist Snehamayi Krishna, who had previously filed a complaint with the Lokayukta police. The complaint concerns the allotment of 14 housing sites by the Mysore Urban Development Authority (MUDA) to Siddaramaiah’s wife in a land exchange deal in 2021.

Earlier Rulings and Objections

While the single-judge bench and a division bench had previously declined to stay the Lokayukta police investigation, the single bench on Thursday stated that the district court’s actions could not frustrate the proceedings before the high court. The court deemed it appropriate to extend the timeline for the report submission to January 28, 2025.

Adjournment of Appeals

On December 5, a division bench adjourned the hearing of appeals filed by Siddaramaiah and a former Mysuru landowner to January 25, 2025. These appeals challenge the September 24 order that allowed the investigation into the MUDA housing site allotment.

The division bench issued notices to the complainants, including Snehamayi Krishna, and refused to stay proceedings on the petition for a CBI probe into the case.

Enforcement Directorate’s Involvement

The Enforcement Directorate (ED) has also launched a money-laundering probe into the MUDA land dealings. The ED has alleged large-scale irregularities in the allotment of land under a 50:50 compensation scheme and has inspected documents related to the scheme.

Siddaramaiah’s Appeal

Siddaramaiah had appealed to the high court in October against the September 24 order, which upheld the governor’s sanction for investigation. The appeal sought to set aside the decision and requested an interim stay on the order allowing an FIR to be filed under the Prevention of Corruption Act.

Court’s Observations on the Land Deal

In his September 24 order, Justice Nagaprasanna raised concerns about the discrepancy between the value of the original land and the compensation land. The court noted that the compensation amount for the land in 1997 was Rs 3,56,000, which increased to Rs 56 crore in 2021. The court questioned the involvement of Siddaramaiah’s family in the transaction, given his position as a lawmaker and Chief Minister during the period in question.

The MUDA Land Allotment

The case revolves around the allotment of 14 housing sites worth Rs 56 crore to Siddaramaiah’s wife. These sites were granted as compensation after MUDA acquired 3.16 acres of land gifted to her by her brother.

Ongoing Investigations

Following the September 24 HC order and a special court’s subsequent directive, the Lokayukta police registered an FIR and began investigations. Meanwhile, Siddaramaiah’s wife has returned the 14 compensation sites allotted to her under the controversial 50:50 scheme.


Multiple-Choice Questions (MCQs):

  1. What did the Karnataka High Court rule regarding the Lokayukta investigation into the MUDA scam?
    • A) The investigation should proceed as planned.
    • B) The investigation was stayed, and the report submission deadline was extended.
    • C) The investigation was dismissed.
    • D) The investigation was transferred to the Enforcement Directorate.
    Answer: B) The investigation was stayed, and the report submission deadline was extended.
  2. What was the new deadline for the submission of the Lokayukta investigation report?
    • A) December 24, 2024
    • B) January 28, 2025
    • C) January 15, 2025
    • D) February 28, 2025
    Answer: B) January 28, 2025
  3. Who filed the petition seeking a CBI probe into the MUDA scam?
    • A) Siddaramaiah
    • B) Justice Nagaprasanna
    • C) Snehamayi Krishna
    • D) The Enforcement Directorate
    Answer: C) Snehamayi Krishna
  4. What was the total value of the 14 housing sites allotted to Siddaramaiah’s wife?
    • A) Rs 3,56,000
    • B) Rs 56 crore
    • C) Rs 14 crore
    • D) Rs 56 lakh
    Answer: B) Rs 56 crore
  5. What scheme was involved in the allotment of the 14 housing sites?
    • A) 50:50 compensation scheme
    • B) Land acquisition scheme
    • C) Chief Minister’s Housing Scheme
    • D) Rural Development Scheme
    Answer: A) 50:50 compensation scheme