Compensatory sites allotted in Vijayanagar for land lost to road and drainage in Dattagalli private layout

Mysore/Mysuru: Even as the One-Man Judicial Commission, led by retired High Court Judge Justice P.N. Desai is investigating corruption at the Mysuru Urban Development Authority (MUDA), various facets and deeper layers of misconduct are emerging. The Commission is examining these illegalities from its Office at Kumara Krupa Guest House in Bengaluru.

MUDA officials have unlawfully allocated over 5,000 sites through a 50:50 ratio scheme, incentive schemes and alternative site schemes to land owners, their General Power of Attorney (GPA) representatives, builders, real estate developers, brokers and intermediaries.

These allocations were executed using site allotment letters or High-Security Bond Sheets, under the guise of Government orders, High Court directives, MUDA Board meeting resolutions and certain Supreme Court rulings.

In doing so, officials have egregiously violated rules and the Karnataka Urban Development Authorities Act, 1987. Additionally, it has now emerged that officials have engaged in corruption through ‘Settlement Deeds,’ thereby circumventing or evading the mandatory Stamp Duty payments to the Government, resulting in significant revenue loss.

Sites for roads and drainage space

As an instance of this misuse, there is a private layout near Dattagalli that has been developed by N. Manjunath, son of late S.N. Nagaraj Rao and a resident of Dollars Colony, 4th Phase, J.P. Nagar, 7th Main, 4th Cross, Bengaluru.

After the layout’s development, alternative sites in Vijayanagar 4th Stage were allocated to Manjunath under an incentive scheme as compensation. Notably, MUDA officials justified this allocation by claiming that the Private Developer N. Manjunath suffered loss of sites as he had lost the land due to the presence of roads and drainage lines over his land.

In other words, sites were granted to compensate the loss of land due to roads and drainage. As per the records available with Star of Mysore, the allocation was made under the pretext of a High Court order and decisions made in MUDA Board meetings.

Title Deed issued in one day

On May 18, 2024, the then MUDA Commissioner G.T. Dinesh Kumar approved a 40×60 site (number 11809/A) in Vijayanagar 4th Stage, 2nd Phase, for N. Manjunath and the allocation related to survey numbers in Dattagalli village, Kasaba Hobli, Mysuru Taluk.

Remarkably, on the same day, May 18, 2024, a Title Deed for the said site was registered in Manjunath’s name with a nominal (symbolic) payment of just Rs. 3,000. The Special MUDA Tahsildar registered the Title Deed at the Office of the Additional District Registrar within the MUDA Office, transferring full ownership rights of the site to Manjunath.

Settlement Deed in 10 days

Just 10 days after receiving the Title Deed, on May 28, 2024, N. Manjunath executed a Settlement Deed in favour of 56-year-old S. Shivanna, son of late Savandayya and a resident of Beeregowdanahundi village, Kadakola Post, Mysuru Taluk.

The Settlement Deed was registered at the office of the Sub-Registrar South, Mysuru, for a total payment of Rs. 90,205, which included registration fees, service charges and Stamp Duty. Thus, the site in question, numbered 11809/A in Vijayanagar 4th Stage, was transferred to Shivanna’s name.

However, the Settlement Deed does not mention the purpose of settlement, the amount involved, or how much money the buyer paid to seller as sale consideration if the site was sold. Additionally, the document does not include any information about the guidance value of site, thereby evading actual Stamp Duty based on guidance value.