In a major setback to Karnataka Chief Minister, a special MP/MLA court on Wednesday (25th September) directed the Lokayukta Police to investigate charges against Siddaramaiah in the Mysuru Urban Development Authority (MUDA) scam case. 

Special Court Judge Santhosh Gajanan Bhat has asked Lokayukta’s Mysuru district police to investigate the MUDA scam and submit the report in three months. The single judge bench issued the order while hearing a petition filed by social activist Snehamayi Krishna.

According to the court order, the Lokayukta Mysuru will investigate allegations of irregularities in the allotment of 14 sites worth Rs 56 crore to CM Siddaramaiah’s wife Parvathi by the Development Authority (MUDA). 

The court has directed the Karnataka Lokayukta Mysuru to take up investigation under CrPC section 156 (3), which is to register the FIR. It has sought an investigation report by 24th December. 

Back to back jolt for CM Siddaramaiah

The development comes a day after the Karnataka High Court gave a major jolt to CM Siddaramaiah. The High Court dismissed his petition that challenged the Governor’s order to grant prosecution sanction against him. 

It is pertinent to note that last month on 17th August, Governor Thawar Chand Gehlot sanctioned an inquiry against CM Siddaramaiah to probe allegations of irregularities in allotment of alternate sites in MUDA development project. His order granted approval for investigation under Section 17A of the Prevention of Corruption (PC) Act, 1988.

The Congress leader had then approached the HC seeking directions to quash the sanction against him. Initially, the High Court gave him a respite and had directed the trial court to defer all proceedings against him until the next hearing.

Karnataka Court upholds Governor’s prosecution sanction against CM, makes scathing observations while junking CM’s plea

In a scathing observation, the Karnataka HC on Tuesday (24th September) remarked that it is difficult to accept that CM Siddaramaiah was not “behind the curtain” during the entire transaction of Muda land, in which his family allegedly benefitted over Rs 56 Crores.

https://x.com/LiveLawIndia/status/1838515298976039305 

Justice Nagaprasanna said, “The facts narrated in the petition would undoubtedly require investigation, in the teeth of the fact that the beneficiary of all the acts is not anybody outside but the family of the petitioner. The petition stands dismissed.”

The single judge bench had also vacated its earlier interim order dated 19th August that directed the Special MP/MLA court to defer the decision on complaints against the Chief Minister, consequently giving the green signal for a probe against the Congress leader. 

With regards to the invocation of Section 17A, the court held, “The approval under Section 17A of Prevention of Corruption Act is mandatory under the facts and situation. Section 17A nowhere requires a police officer to seek approval in a private complaint registered under Section 200 of Criminal Procedure Code or 220 of BNSS against a public servant. It is the duty of the complaint to seek such an approval”.

While the High Court noted that the Governor usually functions on the aid and advice of the council of ministers, it held that the Governor can take “independent decisions” in exceptional circumstances and the current case projects such exceptions. 

The court asserted, “No fault can be found in the Governor exercising independent discretion to pass the impugned order.” 

Furthermore, the bench emphasised that the Governor’s sanction order does not suffer from any “non-application of mind”. According to the High Court, this was not a case of semblance of no application of mind but in fact “abundance application of mind”.

What are the allegations in the MUDA Scam and major developments so far

On 10th July, a social activist Snehamayi Krishna filed a complaint against CM Siddaramaiah and nine others for allegedly forging documents to claim compensation from the development authority (MUDA). The allegations involve the allotment of 14 pricey land sites in Mysuru to the family members of CM Siddaramaiah in exchange for 3 acres 16 guntas of land which were on the outskirts of the city. 

The complaint has accused CM Siddaramaiah, his wife Parvathy, his brother-in-law Mallikarjuna Swamy Devaraj, who claimed to be a landowner, and his family of ‘wrongdoings’. It has alleged irregularities and a scam in the land acquisition and allotment of an alternate site to CM’s family.  

As per the allegations, the development authority (MUDA) generally follows a 60:40 ratio in development projects after acquiring lands from farmers. According to the 60:40 rule, the authority gives back 40% of land to the aggrieved farmers in the “same developed project”. However, in the allotment of land to CM Siddaramaiah’s family, it is alleged that the MUDA officials followed a 50:50 ratio and allocated plots in alternate sites whose estimated worth is said to be higher. 

The scam allegations against the CM have sent shockwaves in state politics. The principal opposition party, BJP has been demanding a CBI probe. According to the BJP, CM Siddaramaiah helped himself with the allotment of 14 plots in the upscale Vijayanagar locality in Mysuru. They have charged CM’s family with accepting Rs 35 crore worth of plots in place of earlier decided compensation of Rs 3 lakh.

Land scams and internal feuds rock CM Siddaramaiah’s chair 

The legal troubles have mounted for CM Siddaramaiah when he is already facing challenges from within. Currently, he is facing massive anti-incumbency on multiple fronts, particularly, the allegations of serious Land scam charges against the Chief Minister, his sitting Cabinet ministers and Congress President Mallikarjun Kharge’s family.   

Sensing his potential ouster in the wake of MUDA scam probe, several senior leaders of party’s state units have already expressed the desire for the Chief Ministerial post. While the CM has claimed that he will fight the case ‘legally‘ and the party is backing him however, if the probing agencies find merit in the allegations, he may face increasing pressure from the party’s warring factions and could face legal consequences for the alleged irregularities.