MUDA case: Special court defers decision on ‘B’ report filed by Lokayukta police giving clean chit to CM Siddaramaiah and wife

A special court in Bengaluru on Tuesday allowed the request of the Lokayukta police to conduct further investigation in the case of illegal allotment of sites by Mysuru Urban Development Authority (MUDA) to probe the roles of former commissioners of MUDA in causing loss to State exchequer by allotting sites illegally.

Also, the court deferred its decision on considering the ‘B’ final report submitted by the Lokayukta police that they could not establish the allegations of corruption and other criminal offences alleged against Chief Minister Siddaramaiah, his wife B.M. Parvathi, her brother B.M. Mallikarjuna Swamy and Devaraju J., who had sold three acres and 16 guntas of land to Mr. Mallikarjua Swamy after getting it denotified from MUDA.

Meanwhile, the court considered the Enforcement Directorate (ED) as an “aggrieved party” for the limited purpose of allowing it to place records and materials collected during its probe under the provisions of the Prevention of Money Laundering Act, 2002, based on First Information Report (FIR) registered by the Lokayukta police.

Santhosh Gajanan Bhat, judge of the special court of sessions for criminal cases against former and present MPs, and MLAs passed the order while considering the plea of the ED, the protest petition opposing ‘B’ report filed by social activist Snehamayi Krishna, on whose complaint the court had ordered investigation in MUDA case.

The court noted that the investigation officer of the Lokayukta police, in his final report, had stated that due to the illegal allotment of hundreds of sites, including 14 sites that were allotted to Ms. Parvathi, by D.B. Natesh, a former commissioner of MUDA, his predecessors and successors in 50:50 ratio during 2016-2024, huge loss has been caused to the Government exchequer, and it requires further probe to fix responsibility and quantify the loss caused.

As the Lokayukta police sought permission to conduct further investigation, the court said that it could not decide the objections filed by Mr. Krishna against the exoneration of Mr. Siddaramaiah and three others or acceptance of ‘B’ report at this stage, as the investigation conducted so far is “not conclusive.” Mr. Krishna had questioned the very basis of the exoneration of Mr. Siddaramaiah and others, even after coming to the conclusion that a huge loss was caused to the exchequer due to illegal allotment of sites.

The court said it would consider the ‘B’ final report submitted with respect to Mr. Siddaramaiah and three others when the investigating agency completes the probe in its entirety while directing the Lokayukta police to complete the probe and submit final report. The Court adjourned further proceedings till May 7.