MDA terminates 94 MUDA contract staff
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MDA terminates 94 MUDA contract staff

May 19, 2025

MUDA had bypassed standard hiring protocols; Government directive seeks clarity, accountability

Mysuru: In a sweeping move, the State Government has terminated the services of 94 contract and outsourced workers employed with the Mysuru Urban Development Authority (MUDA) for several years.

This action follows the formation of the Mysuru Development Authority (MDA), which officially came into effect on May 15, phasing out the MUDA.

These workers, engaged on a contract basis in various roles including Group ‘D’ staff, fingerprint analysts, data entry operators, and vehicle drivers, have been informed that their attendance will no longer be recorded and that they will not receive any further salary payments.

The termination was enforced recently, with department heads and section officers instructed not to assign work to the affected personnel.

Hiring protocols violated

The decision stems from a Government Order issued a month ago, which noted that MUDA had bypassed standard hiring protocols. Without Finance Department clearance or adherence to the tender process, these contract workers were hired, resulting in undue financial strain on Government resources.

Officials have now been directed to submit a compliance report confirming the discontinuation of these services.

Senior officials confirmed that while most of the 94 workers did not report to duty yesterday, a few who arrived were turned away, as no assignments were issued by the newly established MDA.

An earlier letter, dated Feb. 15, 2025, sent jointly by the Urban Development Authorities and the Commissioner for Urban and Rural Planning to the MUDA Commissioner, revealed that although only 66 posts were officially sanctioned, MUDA had outsourced 150 positions — nearly double the approved number. Of these, 94 were engaged without due authorisation.

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Govt. directive demands financial clarity

The Government directive mandates that MUDA clarify whether the appointment of these contract workers was approved in a formal board meeting and if prior permissions were obtained from relevant authorities. It also requires a detailed financial breakdown of the expenses incurred by employing the 94 workers.

Further tightening procedures, a circular dated Feb. 17, 2025, was issued to all Urban Development Authority Commissioners across the State. It specified that any future outsourcing to fill vacant posts must be backed by a detailed proposal and approved by the Finance Department.

Orders against unauthorised hiring

In line with a previous directive dated Dec. 29, 2018, issued by Finance Department Under Secretary Pavan Kumar Maalapeti, department heads no longer hold discretionary powers to hire contract staff.

All such appointments — including for Group ‘D’ employees, fingerprint analysts, data entry operators, and drivers — must now receive prior approval from the Finance Department. Departments must also submit a clear account of sanctioned and vacant posts before making any outsourcing requests.

The MDA’s move to terminate the services of these 94 workers marks a significant shift in governance practices and could have broader implications.

Notably, concerns are being raised that the dismissals may also be linked to efforts to preserve or protect records vital to the ongoing MUDA scam investigation, prompting speculation that the shake-up may be more than just a procedural correction.

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