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 developed sites or alternative sites. The BJP has alleged that MUDA illegally allotted an alternative site to Siddaramaiah’s wife Parvati.
What is the MUDA ‘scam’?
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 transferred by Urban Development Minister Byrati Suresh who held a meeting in Mysuru on Monday.
How did Chief Minister Siddaramaiah’s name crop up?
After reports of the scam emerged, Leader of Opposition (LoP) R Ashoka of the BJP alleged that Siddaramaiah’s wife Paravati too had received an alternative site “in violation of norms”. “How do you defend this?” he asked, pegging the extent of alleged irregularities at Rs 4,000 crore.
RTI activist Gangaraju has alleged that after MUDA developed the Devanur layout on land belonging to Parvati, she received an alternative site in Vijayanagar, one of the neighbourhoods where the land price was higher. This, he alleged, was done even though MUDA had sites at the developed layout that could have been allotted to Parvati.
BJP leaders on Wednesday attempted to lay siege to the CM’s residence over the two alleged scams, calling for his resignation and demanding a Central Bureau of Investigation (CBI) inquiry. “This incident has unmasked the CM. He should resign,” said state BJP president B Y Vijayendra.
What has been Siddaramaiah’s defence?
The CM has dismissed the allegations, saying that the alternative site was allotted to his wife during BJP rule. According to Siddaramaiah, MUDA developed layouts on a three-acre and 16 guntas of property in Kesare, near the Mysuru Outer Ring Road. The land was donated as a gift deed to his wife by her brother Mallikarjun. MUDA developed the layouts and distributed the sites without acquiring the land, he added. “After this, we lost our land as it became MUDA property. Should we lose our property? In exchange, MUDA decided to allot an alternative site of the same value,” he said.
On Wednesday, Siddaramaiah said the government was investigating the alleged irregularities. Asked who formed the policy to provide alternative sites to those who gave up land to develop layouts, he said, “It was the BJP.”
The CM said all the sites MUDA allotted had been suspended and questioned the claims of loss to the exchequer, asking, “Where is the loss to the government?” On the BJP’s demands for his resignation, Siddaramaiah asked, “What is my role in the irregularity? Why should I resign?”
What is the political context?
For the BJP, which lost power last year following a sustained campaign on allegations of corruption against its government, this presents an opportunity to corner the Siddaramaiah government over graft. “Can such a big scam take place in your native district without it coming to your notice or without your involvement?” Ashoka asked on Tuesday, demanding the CM to take responsibility. The BJP on Wednesday tried to lay siege on Siddaramaiah’s home and was stopped by the police, with several top leaders such as Ashoka and Vijayendra detained.
The allegations of the scam come at a time when both the state BJP and Congress are in the midst of turbulence. There is speculation that Ashoka’s days as LoP are numbered and he will be replaced by an OBC or Lingayat leader. Ashoka is from the politically influential Vokkaliga community. The Congress is also battling calls for changing the CM and the state Congress president, and the induction of additional Deputy CMs, as the camps led by Siddaramaiah and Deputy CM D K Shivakumar engage in a power tussle.
BJP MLA C K Ramamurthy being detained by police during a protest march by the BJP against alleged corruption by the ruling Congress government, in Bengaluru, on Wednesday. (PTI Photo) 
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