Lokayukta files final report in MUDA land allotment case involving CM’s family

Lokayukta files final report in MUDA land case; ED attaches ₹300cr assets, ex‑MUDA chief faces money‑laundering charges, court to decide Jan 22

The Karnataka Lokayukta police have filed their final report in the Mysore Urban Development Authority (MUDA) land allotment case, where Chief Minister Siddaramaiah’s family was accused of benefiting from irregular site allocations. The report was submitted to the special court for elected representatives in a sealed cover, ending months of delay after the court had set a two‑month deadline in October 2025.

The case originated from a complaint filed in 2024 by RTI activist Snehamayi Krishna, alleging that MUDA allotted 14 housing sites to the Chief Minister’s wife in 2021 in exchange for a 3.16‑acre property, causing a loss estimated at Rs 56 crore. The Lokayukta police had earlier filed a closure report in February 2025 citing lack of evidence, but the court directed further investigation in April 2025.

The controversy intensified after the arrest of former MUDA chairman G T Dinesh Kumar in September 2025. He was later taken into custody by Lokayukta police for a day in December. The Enforcement Directorate (ED) also filed a prosecution complaint against him, alleging his involvement in a money laundering scheme linked to illegal allotments. ED provisionally attached 142 properties worth Rs 300 crore, though none belonging to the Chief Minister’s family were included.

Investigations revealed that compensation sites were allegedly allotted to ineligible beneficiaries using forged or incomplete documents, back‑dated allotment letters, and violations of government orders. Bribes were reportedly routed through cooperative societies and relatives of Kumar, with some sites purchased in their names.

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Meanwhile, the Chief Minister’s wife returned the 14 sites to MUDA in 2024 amid growing controversy. The Karnataka High Court later quashed ED summons issued to her and Urban Development Minister B S Suresh, a decision upheld by the Supreme Court.

A judicial commission led by retired judge P N Desai concluded in September 2025 that there was no wrongdoing in the allotment to the CM’s wife but found widespread irregularities in MUDA’s functioning between 2020 and 2024. The commission recommended criminal action against officials and cancellation of allotments under the 50:50 scheme after March 2023, describing the process as riddled with loopholes and prone to misuse.

The special court will decide on January 22 whether to accept or reject the closure report filed earlier by the Lokayukta police.

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