Govt. issues fresh orders cancelling MUDA 50:50 sites
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Govt. issues fresh orders cancelling MUDA 50:50 sites

August 27, 2026

Mysuru: In a modified administrative order, the Urban Development Department has ordered the immediate cancellation of all site allotment orders issued by the erstwhile MUDA, now Mysuru Development Authority (MDA), under the controversial 50:50 incentive scheme.

The directive, issued by Urban Development Department Under Secretary K. Latha on Aug. 25, follows key recommendations of a High-Level Technical Committee that reviewed the findings of the Justice P.N. Desai Judicial Commission.

The earlier order, issued on Aug. 19, had cancelled the allotment of 1,100 housing sites valued at Rs. 2,000 crore under the alternative land compensation scheme by MUDA, in violation of the Government order dated March 14, 2023, which barred such allotments.

The Urban Development Department had warned MUDA against implementing the scheme on May 4, 2021 and again on March 14, 2023. However, MUDA continued with the allotments.

However, the Aug. 19 order did not clearly mention sites allotted under the 50:50 ratio, leading to ambiguity and prompting the Opposition BJP and JD(S) to demand cancellation of all such allotments. The latest order has now removed the ambiguity.

It clearly states that all allotment orders issued as compensation under the 50:50 ratio, governed by the Karnataka Urban Development Authorities (Incentive Scheme for Voluntary Surrender of Land) Rules, 1991, and in violation of Rule 16 of the Karnataka Urban Development Authorities (Allotment of Sites) Rules, 1991, stand revoked with immediate effect.

The Mysuru Deputy Commissioner and Chairman of MDA, the Commissioner of Urban Development Authorities and the MDA Commissioner have been directed to strictly implement the order and submit a compliance report to the State Government immediately.

The Government has also warned that failure to comply with the order will invite strict disciplinary action as per the rules.

The latest order highlights serious procedural lapses in the manner in which land compensation was provided to landowners who surrendered their properties to MUDA and marks a stern move by the Government to rectify the alleged irregularities.

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