MUDA 50:50 sites allotment scam investigation: Lokayukta issues notices to 40 site allottees
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MUDA 50:50 sites allotment scam investigation: Lokayukta issues notices to 40 site allottees

February 10, 2026

Probe intensified into 1,055 sites; 134 beneficiaries identified so far, says Lokayukta SP T.J. Udesh

Mysore/Mysuru: After causing sleepless nights for several politicians who faced public allegations, accusations and a series of Court cases in connection with the Mysuru Urban Development Authority (MUDA) 50:50 sites allotment scam, the investigation has now turned towards other beneficiaries of the scheme.

The Mysuru Lokayukta Police have begun issuing notices to owners of sites allotted under the 50:50 scheme, through which land losers receive developed sites after surrendering land to MUDA for layout formation. Notices have already been served on more than 40 individuals who acquired such sites.

Investigators have prepared 134 case files and have been issuing notices over the past two months. More notices are expected as additional files are examined in cases where irregularities are suspected, sources said.

Fed up with the corruption in this 50:50 scheme, State Govt. rebranded MUDA as MDA.

1,055 sites between 2016 and 2024

Under the 50:50 scheme, 50 percent of developed sites are allotted to landowners whose properties are acquired by MUDA. A total of 1,055 sites were allotted under the scheme between 2016 and 2024.

The Lokayukta has obtained High Court permission to investigate these allotments. During this period, around 135 landowners and GPA holders are said to have benefited from the 1,055 sites.

Earlier allegations had claimed that irregularities in the allotment process — in violation of land allotment rules — led to losses running into thousands of crores of rupees.

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The Lokayukta probe is ongoing, and fresh notices have also been issued to several individuals, including former MUDA Commissioners G.T. Dinesh Kumar and Dr. D.B. Natesh.

The development has created anxiety among beneficiaries of the 50:50 scheme, as well as among those who later sold the sites to others at premium prices.

Probing corruption, rule violation

Confirming the action to Star of Mysore this morning, Mysuru Lokayukta Superintendent of Police T.J. Udesh said notices had been issued both to officials involved in the allotments and to recipients of the sites.

“The process began two months ago. Those who have received notices have been directed to appear for inquiry and provide explanations. The investigation relates to corruption, misallocation and rule violations concerning 1,055 sites. A formal case has been registered, and the probe is in progress,” he said.

He added that in some instances, individuals who surrendered land in one area had obtained developed sites in different layouts. In certain cases, landowners received developed sites despite also receiving monetary compensation from MUDA during acquisition, amounting to double compensation in violation of rules.

The SP further said a few individuals had obtained multiple sites across layouts in exchange for the land surrendered. “This is a lengthy process. Each case file requires at least five to six days of examination as investigations are carried out individually,” he noted.

A report will be submitted to the Karnataka High Court if irregularities are established, following which the Court will decide on further legal action, he added.

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