Mysuru: A scam within the Mysuru Urban Development Authority (MUDA), involving illegal allotments of high-value sites worth thousands of crores of rupees under the controversial 50:50 scheme, continues to unravel and is under investigation.

Adding to the controversy, it has now come to light that MUDA officials failed to collect outstanding lease rent amounting to Rs. 64,11,472 from the Nalwadi Krishnaraja Wadiyar Convention Hall in Hebbal, a MUDA property.

The City Improvement Trust Board (CITB) originally constructed a convention hall popularly known as the ‘CITB Choultry’ on Dr. Ambarish Road, Hebbal 2nd Stage, Outer Ring Road. After CITB transitioned into MUDA, the authority built a fully equipped convention hall named Nalwadi Krishnaraja Wadiyar Convention Hall at a cost of Rs. 5.5 crore.

Despite high public demand for hosting auspicious events such as weddings and engagements in this east-facing Kalyana Mantapa, MUDA officials, instead of managing and renting the hall directly, leased it out for five years at a fixed annual rent.

Leased out in 2018

On Oct. 25, 2018, the hall was leased for Rs. 36 lakh per year to contractor S. Siddarajappa, owner of Bengaluru-based Sarkar Constructions, located at 7th ‘A’ Cross, Tavarekere Road, BTM Layout 1st Stage, Bengaluru.

As per the agreement, Siddarajappa was required to pay Rs. 36 lakh annually to MUDA. However, after making the initial payment for the first year, he defaulted on subsequent payments, citing business losses.

The agreement included the transfer of a fully operational convention hall to the contractor, equipped with electricity, underground drainage, drinking water connections, a solar system and ten heavy-duty industrial fans, each valued at Rs. 50,000.

Rs. 1.5 lakh rent per wedding

Paying only Rs. 36 lakh annually to MUDA as lease rent, Siddarajappa collected Rs. 1.5 lakh per wedding event held at the convention hall. He managed the maintenance by paying for electricity, water and underground drainage charges himself. The contractor also provided cooking utensils, gas and dining Hall furniture. The Hall was in high demand, with weddings taking place almost daily throughout the year. On non-wedding days, the hall was rented out for sales expos on a per-day basis, generating additional revenue.

Rs. 64,11,472 outstanding rent

Despite earning consistently, Siddarajappa cited the COVID-19 pandemic as an excuse to extend the lease by an additional year. The extended lease period ended on March 6, 2024. However, Siddarajappa has failed to pay Rs. 64,11,472 in outstanding rent to MUDA.

Despite being issued two notices by former MUDA Secretary G.D. Shekhar on March 20 and June 5, 2024, to clear the outstanding lease rent, Siddarajappa paid no heed. Even after the Court dismissed his writ petition seeking an extension, he failed to make the payment.

10 fans missing

MUDA officials have taken possession of the Convention Hall from the defaulting contractor due to his failure to pay the outstanding rent. However, it has been reported that 10 heavy-duty industrial fans, each valued at Rs. 50,000, installed in the Hall are now missing.

Fresh tender invited

MUDA officials have dropped efforts to recover the Rs. 64,11,472 outstanding lease rent from the former contractor and have not initiated action despite the missing fans and other items. Legal advisors have pointed out that the lack of a detailed list of equipment in the agreement has made pursuing legal action difficult.

Now, the MUDA Superintendent Engineer has invited tenders via the e-Procurement Portal to lease the Nalwadi Krishnaraja Wadiyar Convention Hall for five years, with a minimum annual rent of Rs. 40 lakh.