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The Mysuru Urban Development Authority (MUDA) is under scrutiny after a Lokayukta report revealed 1,055 site allotments under the controversial 50-50 scheme (2016-2024). Originally meant to compensate landowners, the scheme allegedly saw irregular allotments in upscale areas, raising transparency concerns. A 2017 High Court ruling worsened MUDA's financial losses. Allegations surfaced of up to 4,000 sites being allocated improperly, though the investigation confirms 1,055. The Lokayukta has urged a deeper probe, and a Bengaluru special court will decide on expanding the investigation.
The Mysuru Urban Development Authority (MUDA) has come under intense scrutiny after a Lokayukta report revealed that 1,055 sites were allotted under the controversial 50-50 scheme between 2016 and 2024. The scheme was introduced as an alternative method to compensate landowners when traditional cash compensation or allotment of a developed 30 by 40 square foot site per acre became unviable amid a booming real estate market. Advertisement
Originally, when land prices were lower, landowners who surrendered their land to MUDA were compensated with cash or a developed plot for each acre acquired. However, as real estate values began to rise, landowners found the conventional compensation insufficient. In response, MUDA modified its approach and introduced a scheme whereby 40 per cent of the developed sites would be allotted without a cash component. This was later revised to a 50 50 scheme, under which landowners received 50 per cent of the developed sites in return for their land.
This new approach, however, has not been without controversy. Reports indicate that, although the rules stipulated that compensatory sites must be allotted within the same area, some MUDA officials began allocating sites in upscale localities. Such deviations have raised serious questions about the transparency and fairness of the allocation process. A high court order in 2017, which mandated that MUDA return two acres of land to an owner in Bogadi, further complicated the matter. The incident reportedly led to significant financial losses for the authority as vast sums were spent on the development of the Bogadi land, only for the allotment to be reversed.
The Lokayukta report, submitted last week to a special court in Bengaluru that handles cases involving elected representatives, has ignited fresh calls for an in-depth investigation into the allotment of these sites. Lokayukta officials have sought permission from the court to probe further into the matter, suggesting that if the court grants their request, it is likely that additional politicians and bureaucrats involved in the process will also be exposed. The report specifically names the period from 2016 to 2024, during which 1,055 sites were allotted under this scheme. It is noted that 135 landowners, who are holders of GPA certificates, benefited from the scheme. However, there have been allegations that MUDA disposed of up to 4,000 sites via this mechanism; the Lokayukta investigation, however, confirms that only 1,055 sites were allotted.
An official familiar with the investigation explained, "The 50-50 scheme was introduced to provide an alternative to traditional cash compensation and to make it easier for landowners to part with their land during a real estate boom. Unfortunately, the lack of strict oversight and deviation from the rules, such as allotting sites in upscale areas, has led to potential irregularities that now demand a closer look."
In response to the findings, Lokayukta has urged for a comprehensive review of the 50-50 scheme and its implementation. The authority's probe aims to identify the root causes of the discrepancies and to hold any erring officials accountable. The special court in Bengaluru is expected to decide on the Lokayukta's request for further investigation, which could expose more political and administrative figures involved in the irregular allotments.
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