MUDA allots sites worth Rs. 80 crore as compensation in 2024 for land acquired in 1968 !

Mysore/Mysuru: As Star of Mysore continues to expose the deep rot in Mysuru Urban Development Authority (MUDA), one more blatant violation of the law has come to light where MUDA officials illegally distributed sites using the 50:50 ratio scheme.

In 1968, the then City Improvement Trust Board (CITB) acquired a total of 8.14 acres of land to create  Gokulam Layout. In this 8.14 acres, 4.13 acres was under Survey No. 57 and 3.31 acres was in Survey No. 77/2. These two Survey Numbers were in the area called Maragowdanahalli village, Kasaba Hobli, Mysuru Taluk. The original owner of this land was a person named Ugraiah, son of Dodda Ugri. Ugraiah later passed away.

Now, after 56 years, in 2024, one D. Nagaraju, claiming to be the son of Ugraiah filed an application at MUDA for compensation saying it was not paid to his father. The MUDA Special Land Acquisition Officer issues a confirmation saying  compensation was not provided to original land owner Ugraiah. 

Following Nagaraju’s application, Commissioner G.T. Dinesh Kumar notes in the file that according to the 2013 Land Acquisition Act, the current market rate must be paid if the land is used or acquired for a layout without awarding compensation to the original land owner.

The Commissioner refers Court rulings and Government Orders to compensate in the form of sites under 50:50 ratio to legal heir (Nagaraju). Additionally, the Commissioner notes in the file and reminder letters that, according to the Supreme Court’s ruling (in R.L. Jain vs. DDA (2004) SCC 79) and State Government’s Circular (No. RT 155 EQW 2007 dated Sept. 17, 2007), if land is acquired by any urban body like MUDA before issuing a preliminary notification, compensation must be provided for the loss from the date of acquisition until the preliminary notification. In this case, the compensation is due to the landowner, D. Nagaraju.

The Commissioner then notes in the file that Nagaraju is eligible for compensation and goes ahead to distribute sites for the land acquired by MUDA in 1968.  

57 sites — 98,206 sq.ft

In exchange for the 8.14 acres of land in Maragowdanahalli village, used to create Gokulam Layout purportedly without compensation, MUDA Commissioner Dinesh Kumar issued a single order on June 15, 2024.

This order sanctioned 67 sites and allocated 57 sites, covering 98,206 sq.ft, in the developed areas of Vijayanagar Second Stage, 4th Phase and Dattagalli 3rd Stage, to Nagaraju, considered the legal heir of landowner Ugraiah. These sites are valued at around Rs. 80 crore.

Lingering questions

If the land for Gokulam Layout was acquired in 1968 without compensation, why did landowner Ugraiah and his family remain silent till 2024?

Why was then CITB allowed to create Gokulam Layout and distribute sites without ensuring compensation?

How did MUDA officials know the family tree is authentic?

How did MUDA officials  conclude that CITB had indeed not paid compensation? Where is the documentation for non-payment?

Why didn’t MUDA take this matter to court, after all when someone claims compensation after 56 years, it should raise doubts about authenticity of documentation.

These are the critical questions that demand answers in this case.

Allocation letters issued in one day

On June 15, 2024, the Commissioner of MUDA (Mysuru Urban Development Authority) not only approved 57 sites covering 98,206 square feet, valued at Rs. 80 crore, for Nagaraju but also hastily ordered officials through an internal memo to prepare and issue allocation letters for all the 57 sites on the same day.

The case involving D. Nagaraju alone hints at a multi-crore scam. However, there’s growing suspicion that middlemen, elected representatives, officials and real estate businessmen have pocketed the lion’s share of the benefits, leaving only token compensation for the legal heir of the original landowner.

A thorough investigation is essential. But the pressing question is: Who will take the decisive step to act on this?

No fear of the law: Registration of sites under MUDA’s 50:50 scheme continues !

Phone calls have been pouring in to various Sub-Registrars’ offices in city by members of the public alleging that the Mysuru City Corporation (MCC), City Municipal Councils (CMC) and Town Panchayats (TP) are registering sites illegally and fraudulently allotted by MUDA (Mysuru Urban Development Authority) under the 50:50 ratio, allegedly in exchange for bribes.

After the scam surfaced, the State Government formed an investigation team and a one-man Judicial Commission and ordered that no daily activities be conducted at the MUDA office until the investigation report was submitted.

This led to a halt in daily operations. However, even after the Government gave the green light to resume activities, MUDA officials have not restarted daily operations, yet continue to draw hefty salaries and other benefits.

The public, who contacted SOM, allege that Local Bodies like the MCC, CMCs and TPs are registering sites obtained under the 50:50 ratio, thus facilitating the transfer of ownership.

They also pointed out the absence of clear directives from the State Government to MUDA’s Additional Registrar or the Sub-Registrars of Mysuru, instructing them not to issue title deeds, General Power of Attorney (GPA) registrations or settlement deeds.

This lack of direction has allowed the continued registration of sites allotted under the controversial 50:50 scheme. Highlighting this issue, the public has demanded that no site approved under the 50:50 ratio should be registered until the entire investigation is complete.