MUDA 50:50 Sites Scam: Favouritism led to high-level misuse

• Alternative site denied to original land owner but granted to second purchaser
• 1.21-acre land in Devanur fetches sites worth Rs. 8 crore in J.P. Nagar, Bogadi

Mysore/Mysuru: With the intention of developing new layouts in collaboration with farmers, the State Government issued a notification on Feb. 11, 2015, directing all Urban Development Authorities to allocate sites to land owners at a 50:50 ratio.

However, it is in the public knowledge now that officials from the Mysuru Urban Development Authority (MUDA) exploited this rule to grant sites indiscriminately, embezzling crores of rupees and inflicting a loss of thousands of crores of rupees on the State Exchequer.

A fresh example of this blatant misuse has now come to light. Despite numerous applications from the original land owners requesting compensation under this 50:50 scheme for the land they lost for layout development, MUDA officials rejected them, citing technical reasons.

However, based on the recommendation of L. Nagendra, a MUDA member and MLA at that time, seven sites totalling 16,607 square feet in  J.P. Nagar and Bogadi layouts were approved in the name of the second purchaser of the land. This illustrates how MUDA officials acted under the influence of powerful individuals.

Details of the case

In Mysuru Taluk, Kasaba Hobli, a 1.21-acre land under Survey Number 81/1 in Devanur village was previously used by the City Improvement Trust Board (CITB) to develop a residential layout without initiating the land acquisition process.

This particular 1.21-acre plot originally belonged to Nijaguna alias Nijagunamma and Harish as the land came into their share of their family property.

Since the land was used for layout development by CITB (which became MUDA in 1988), an application was submitted by Nijaguna and Harish to MUDA in 2020 requesting compensation in the form of sites under the Government’s 50:50 scheme. However, the officials rejected the application citing some technical reasons and provided an explanation for rejection in the form of file notings.

First sale of land in May 2020

Unable to secure sites under the 50:50 ratio, Nijaguna and Harish sold the said land to S. Thara through a clear sale on May 20, 2020.

The sale was registered at the Mysuru North Sub-Registrar’s Office and subsequently, the property was recorded in the Mysuru Taluk Tahsildar’s Office under Khata Number 144, as per the Record of Rights,  Tenancy and Crops (RTC) — MR H2/2020-21.

Second sale in March 2021

Later, on March 1, 2021, S. Thara sold the land through a clear sale to V. Venkatesh of Bogadi and the Khata was also transferred to his name.

Subsequently, Venkatesh submitted an application to MUDA, requesting compensation for the land since a layout had already been developed on his property.

Issue in MUDA meeting

Based on the recommendation of a MUDA member L. Nagendra, who was an MLA at the time, a proposal was tabled during MUDA meetings held on Nov. 6, 2020 and Nov. 20, 2020.

Under Item Number 5 on the agenda, the meetings decided to allocate 50 percent of the land in developed layouts as compensation to Venkatesh, given that the land had been used for a layout without initiating the acquisition process.

Grant of sites

In a related development to this, Venkatesh, the Khata holder, registered a relinquishment deed on June 17, 2021, transferring 1.21 acres of land under Survey No. 81/1 in Devanur to MUDA’s name.

In return, as per the Government’s 50:50 ratio order dated Feb. 11, 2015 and MUDA’s decision (taken on Nov. 6, 2020 and Nov. 20, 2020), Venkatesh was granted 16,607 square feet of sites in the developed layouts of Bogadi and J.P. Nagar in a 50:50 ratio as compensation.

These sites are valued at Rs. 8 crore. The then Commissioner in 2021 Dr. D.B. Natesh issued an official memorandum, approving this on June 17, 2021. In a nutshell, for the 1.21-acre land acquired in Devanur, MUDA sanctioned seven sites in Bogadi and J.P. Nagar worth over Rs. 8 crore.

What does the law say?

As per rules, for applications related to cases before 2015, where land has been used for layout development without acquisition and without compensating the land owners, MUDA must seek approval from the Board to pay compensation to the land owner with interest based on the               land’s value at that time.

If the land owners do not agree to the compensation, they may approach the Court and MUDA must act according to the Court’s directives. The law also states that the MUDA Commissioner cannot unilaterally approve valuable sites in developed layouts under the 50:50 scheme for cases that have occurred before 2015. If at all approved, it is illegal, as per law.

However, in this case, sites were approved in the name of the second purchaser instead of the original land owners. Additionally, instead of granting land in a parallel or an equivalent layout (where the land was originally acquired), highly valuable sites were approved in prestigious layouts developed elsewhere. This clearly indicates a violation of the rules to benefit the allottee.