Decode Politics: What is the ‘MUDA scam’ over which Siddaramaiah is facing BJP heat?

For the second time in a month, the Congress government in Karnataka has been rocked by allegations of a scam, triggering a political firestorm in the state.

The first was the alleged misappropriation of funds at the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd (KMVSTDC) that led to the resignation of Minister B Nagendra. The latest one is the alleged irregularities in the 50:50 incentive scheme of the Mysuru Urban Development Authority (MUDA). Under the scheme, people who lose land for the development of layouts receive either 50% of the sites or alternative sites. The BJP has alleged that MUDA illegally allotted an alternative site to Siddaramaiah’s wife Parvati.

Among the alleged violations found in MUDA was that several people received more alternative sites than they were entitled to. There are also allegations that some received alternative land in localities where the guidance value of land — the official minimum value of land or properties — was higher than the places where the layouts came up. This resulted in losses for MUDA worth hundreds of crores.

Such allocation of sites continued despite two government orders in the last six months directing MUDA to cancel the allotment of sites to beneficiaries under the 50:50 scheme until clear guidelines were issued. However, the allotments did not stop. A government order instituting an inquiry under IAS officer Venkatachalapathy R, dated July 1, said prima facie there was suspicion of illegalities in the allocation of sites. Rather than providing sites for eligible beneficiaries, there are complaints that they were allotted for influential people and real estate agents, it said.

Four officers, including MUDA Commissioner Dinesh Kumar, have been