Karnataka Lokayukta police file final report on probe into MUDA land allotments case where CM Siddaramaiah family is accused

The Karnataka Lokayukta police filed a B report, or closure report, in February 2025, citing a lack of evidence to establish the allegations that Siddaramaiah profited to the tune of Rs 56 crore after his wife received 14 housing sites from MUDA in 2021 in exchange for a 3.16- acre plot.

In April 2025, however, the special court neither accepted nor rejected the closure report but directed the Lokayukta police to continue investigations and file a final report.

On Tuesday, the special court noted the filing of a sealed cover document by the Lokayukta police as the final report in the MUDA scam probe and posted the matter of a decision on the closure report to January 22. “It is noticed from records that the learned SPP has also furnished another sealed cover, which allegedly consists of the final report…,” the court said.

On December 18, 2025, the special court asked the Lokayukta police to provide the case diary of investigations conducted in the MUDA scam after the Lokayukta police sought more time for investigations following the arrest of former MUDA chairman G T Dinesh Kumar.

The Lokayukta police had also indicated that it was awaiting government sanction for the prosecution of several accused in the case who are public servants.

Following the controversy over the allotment of the 14 housing sites, the CM’s wife returned the 14 housing sites to the MUDA in 2024.

The special court also said in April 2025 that the Enforcement Directorate, which filed a protest petition against the Lokayukta police closure report, could also continue its investigations with respect to a Prevention of Money Laundering Act case registered over the MUDA land allotments.

On November 14, 2025, ED had filed a prosecution complaint against former MUDA commissioner G T Dinesh Kumar in connection with the alleged illegal allotment of MUDA land. Kumar was arrested in September 2025 and has since been in prison. He was taken into custody for a day by the Karnataka Lokayukta police on December 17, 2025.

“The evidence and documents collected during the course of investigation in this case have indicated active involvement of GT Dinesh Kumar in the comprehensive money laundering scheme perpetrated at MUDA, Mysuru, during his tenure as commissioner,” ED has stated.

ED attaches properties worth Rs 300 crore

The Enforcement Directorate has provisionally attached 142 properties worth Rs 300 crore in connection with its investigation into the alleged large-scale irregularities in the allotment of housing sites by MUDA, which emerged in 2024. The properties of the CM’s family were, however, not attached.

The Karnataka High Court on March 7 quashed a summons issued by ED to the CM’s wife and Urban Development Minister B S Suresh in the MUDA matter by emphasising that an individual cannot be compelled to give a statement in a PMLA case when no incriminating material has been found against them. This order was upheld by the Supreme Court.

The central agency has said that its probe revealed a large-scale scam in the allotment of MUDA sites.
“The role of GT Dinesh Kumar has emerged as instrumental in illegal allotment of compensation sites to ineligible entities/individuals. The evidence with respect to obtaining bribes for making illegal allotments in the form of cash, bank transfer, movable/immovable properties have been gathered during the course of the investigation,” ED has said.

The modus operandi for making the alleged illegal allotments involved the identification of ineligible beneficiaries and making allotments using fake or incomplete documents, in violation of government orders, and also by back-dating allotment letters, the agency said.

The gratification received for making these illegal allotments was routed through a cooperative society and bank accounts of the relatives or associates of Kumar, who has played a key role in the allotment process, the agency added.

The gratification was further used to purchase some of these illegally allotted MUDA sites in the name of Kumar’s relatives, the ED said.

Judicial commission finds large-scale irregularities

In September 2025, a judicial commission headed by a retired high court judge, P N Desai, which was assigned the role of investigating the allegations of corruption and maladministration in MUDA, reported that there was no wrongdoing in the CM’s wife being given 14 developed housing sites to compensate for 3.16 acres wrongly acquired by MUDA.

The Justice P N Desai commission, however, found large-scale irregularities in the functioning of MUDA in the 2020-2024 period and recommended criminal investigations and action against MUDA officials as well as cancellations of site allotments done by MUDA under the 50:50 scheme after March 2023, when the scheme was flagged as violating rules.

Among the key findings of the Justice Desai commission are that the MUDA scheme for the allotment of alternative sites as compensation for land acquired by the authority was filled with loopholes and seemed devised for benefitting illegal claimants and that it reeked of a scam.

The sudden emergence of demands for alternative sites in the 2020-24 period as compensation for MUDA- acquired properties “may be with intention to get some better sites of their choice with the help and connivance of MUDA Officers and officials or It appears to be a scam in allotting alternate sites giving untenable reasons”, the commission said.