MUDA 50:50 site scam: Corner sites in prime layouts across city misallocated causing financial loss
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MUDA 50:50 site scam: Corner sites in prime layouts across city misallocated causing financial loss

July 14, 2024

Mysore/Mysuru: In a significant revelation, prime corner sites in various localities within Mysuru city, which were reserved to generate revenue for the Mysuru Urban Development Authority (MUDA), have been misallocated under the 50:50 site allotment scam.

These spacious corner sites, strategically located on both sides of the road at various prime layouts, were intended to be valuable assets for MUDA.

The inquiry panel led by IAS Officer R. Venkatachalapathy, Commissioner of Urban Development Authorities and Town and Country Planning, has uncovered this aspect in an ongoing probe into the alleged  scam at MUDA.

The investigation has revealed that these prime sites were distributed to unauthorised persons under the 50:50 scheme, bypassing their intended purpose as revenue-generating properties. This misallocation has caused significant financial loss due to the ineffective use of these                                                                valuable lands.

Role of officials and intermediaries

In the past, MUDA had successfully converted some of these prestigious residential layouts in Mysuru city into revenue-generating corner sites, earning hundreds of crores  of rupees.

However, the current investigation has brought to light that some officials and intermediaries have amassed hundreds of crores of rupees by allocating these corner sites in prestigious residential layouts previously developed by MUDA.

The shocking details have exposed how the authority has been financially drained by unscrupulous elements. These activities have resulted in significant financial losses for MUDA by distributing corner sites as compensation for the development of very low-value land at a 50:50 ratio.

Lower-level officials identified vacant corner sites, compiled lists, and, without bringing these to the attention of the MUDA Board meeting, recorded them in the files and unilaterally allocated hundreds of plots  as compensation.

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This was done without proper authorisation. Special land acquisition officers, through intermediaries, called landowners and allocated plots, as revealed in the probe.

Names of deceased misused

In some cases, even when the original landowners were deceased, other individuals with the same name were brought in, lured with small amounts of money, and given a General Power of Attorney (GPA).

These individuals were then allocated the plots, and they later registered the plots in their own names. This entire scheme has brought MUDA to the brink of bankruptcy. Previously, some officials had created fake documents and sold plots to anyone who wanted them. Many of those involved have  since retired.

As the investigation continues, there is a growing demand for reviewing the records from the tenure of these officials and taking appropriate action against those involved in this extensive scam.

Report in 15 days?

Meanwhile, the inquiry committee is expected to submit its report within 15 days and the members have reportedly secured all relevant documents and have stored them in a designated room on the MUDA office premises.

This room has been sealed to restrict access, and the committee is thoroughly assessing the documents in this secured location. The committee has already instructed officials and staff not to take leave and to be available whenever called for questioning.

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