Paromita Das
New Delhi: In a significant legal and political development, the Enforcement Directorate (ED) has raised strong objections to the closure report filed by the Karnataka Lokayukta in the high-profile Mysuru Urban Development Authority (MUDA) scam. The case, which names Karnataka Chief Minister Siddaramaiah as accused number one, has once again come into the spotlight as the ED has urged the Special Court for MPs/MLAs not to accept the closure report and instead order a thorough investigation. This move by the ED is widely seen as a setback for CM Siddaramaiah, who was preparing for a crucial visit to Delhi amidst escalating internal conflicts within the ruling Congress party.
ED’s Objections to the Closure Report
The ED, through its Assistant Director, has detailed its findings under the Prevention of Money Laundering Act (PMLA). The agency has pointed out multiple irregularities, including illegal land acquisition, unlawful allotments, the generation and laundering of proceeds of crime, and undue influence in land transactions. The agency asserts that key pieces of evidence provided to the Lokayukta police were overlooked in the closure report.
A significant aspect of the ED’s objections revolves around a 3-acre, 16-gunta plot in Kesare village (Survey No. 464). The ED contends that despite substantial evidence indicating irregularities in its denotification and subsequent transactions, the Lokayukta police failed to consider these aspects in their report.
Key Allegations in the MUDA Scam
- Dubious Land Transactions – The ED highlighted that the land was purchased by CM Siddaramaiah’s brother-in-law, Mallikarjunaswamy, in 2004 and later gifted to his wife, B.M. Parvati, in 2010. However, no compensation was sought from MUDA until 2014—a delay of ten years, which the ED deems suspicious.
- Wielding of Undue Influence – The investigation uncovered evidence of influence being exerted in MUDA by individuals closely associated with Siddaramaiah to facilitate the allotment of land through unlawful means.
- Questionable Allotment Practices – The ED alleges that the Lokayukta police did not take into account crucial evidence showing cash payments and the transfer of movable and immovable properties to MUDA officials in exchange for illegal allotments.
- Pre-existing Development Work on the Land – Satellite imagery from 2001 to 2003 indicates that roads and infrastructure had already been constructed on the land before its purchase. The ED argues that the claim by the accused that they were unaware of prior development is untenable.
- Irregular Land Conversion – Despite the presence of completed development work, the Revenue Department facilitated the land conversion based on a request by Mallikarjunaswamy. The ED considers this another instance of undue influence that was disregarded in the closure report.
Legal and Political Ramifications
The ED’s objections come at a time of growing political turbulence for CM Siddaramaiah. His planned visit to Delhi, aimed at addressing internal discord within the Congress, now appears overshadowed by these allegations. The ED’s insistence on a continued probe not only raises questions about the Lokayukta’s handling of the case but also puts the ruling party in a defensive position.
Social activist Snehamayi Krishna, who originally lodged the complaint, has been persistent in seeking accountability. The Special Court had directed the filing of the PCR on September 25, 2024. Despite an FIR being lodged against Siddaramaiah and his family, the Karnataka Lokayukta eventually submitted a closure report exonerating them.
However, legal proceedings have taken multiple turns. The Karnataka High Court on March 7, 2025, quashed the summons issued by the ED to Siddaramaiah’s wife, Parvathi, and Urban Development Minister Byrathi Suresh. Subsequently, Krishna approached the Central Vigilance Committee (CVC) on March 12, challenging the Lokayukta’s clean chit to the CM and his family. His writ petition seeking a CBI probe into the case was also dismissed by the Karnataka High Court’s single bench.
A Test for Transparency and Justice
The ED’s intervention underscores a larger issue concerning transparency in high-profile political cases. The discrepancies between the ED’s findings and the Lokayukta’s report raise crucial questions about the independence and effectiveness of anti-corruption agencies in Karnataka.
While the ruling Congress has dismissed these developments as politically motivated, the persistence of investigative agencies suggests that there are unanswered questions that demand further scrutiny. If indeed due process was not followed in the MUDA case, allowing the closure report to stand could set a dangerous precedent for future corruption investigations.
On the other hand, critics argue that such cases are often selectively pursued to discredit political opponents. With elections on the horizon, the timing of the ED’s objections will undoubtedly be seen through a political lens. Nevertheless, the core issue remains: Has justice been served, or has political influence derailed an essential probe?
The ED’s decision to challenge the closure report in the MUDA scam case is a significant development that could have far-reaching consequences for both the legal and political landscape in Karnataka. If the Special Court takes cognizance of the ED’s objections, it could lead to renewed investigations, further prolonging the controversy surrounding CM Siddaramaiah and his associates.
Regardless of political affiliations, the case highlights the importance of ensuring that allegations of corruption are investigated thoroughly and impartially. Whether this case results in further legal action or a reaffirmation of the Lokayukta’s report, it will undoubtedly shape public perception about governance and accountability in Karnataka in the coming months.
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