Karnataka cancels 1,100 MDA alternative site allotments worth ₹2,000 crore
The Karnataka government has ordered the cancellation of approximately 1,100 alternative sites allotted by the Mysuru Development Authority (MDA) under the controversial 50:50 scheme, citing violations of a March 14, 2023 directive. The decision follows recommendations from a single-member inquiry commission and a high-level technical committee that probed alleged irregularities in the allotments.
Urban Development Minister Yathindra Siddaramaiah said on Wednesday that the sites proposed for cancellation are estimated to be worth around ₹2,000 crore. The government order, issued the same day, states that all 50:50 alternative site allotments made in violation of prescribed conditions are to be cancelled with immediate effect.
The order also directs the MDA Chairman/Deputy Commissioner, the MDA Commissioner, and the concerned local bodies to take necessary action regarding such allotments. Authorities have been instructed to file civil suits seeking cancellation of sale deeds if the sites have already been registered with sub-registrars. In cases where sale deeds have not yet been executed, the MDA has been directed not to issue them until the government frames clear guidelines and issues further directions.
Additionally, the Mysuru City Corporation, municipalities, and gram panchayats have been directed to stop the khata process for sites that have already been registered. If khatas have already been issued, local bodies must cancel them in accordance with provisions of the Karnataka Municipal Corporations Act, 1976, Karnataka Municipalities Act, 1964, and Karnataka Gram Swaraj and Panchayat Raj Act, 1993.
The authorities have been asked to submit a compliance report to the government immediately. The government has warned that failure to implement the directions will invite appropriate action against the officials concerned.
Minister Yathindra said the action will be taken in two phases. The first phase covers allotments made after March 14, 2023, in violation of the prescribed rules. In the second phase, the government will examine allotments made before that date to ascertain whether any rules were violated, and action will be taken if irregularities are found.
The scrutiny of MDA allotments gained attention after Chief Minister Siddaramaiah faced allegations of irregularities in the allotment of 14 sites, reportedly worth ₹56 crore, to his wife, Parvathi. A special court in Bengaluru later accepted the ‘B’ report filed by the Karnataka Lokayukta in the case, indicating no prima facie evidence of wrongdoing.
The government’s decision is based on institutional findings and aims to address procedural violations. It remains to be seen how the cancellation process will affect current allottees and whether legal challenges will follow.
