MUDA Case: Bengaluru Special Court To Decide On ED's Objection To Closure Report Against CM And Family

A key ruling is expected on April 15 from the special court for MLAs and MPs in Bengaluru on the Enforcement Directorate’s (ED) objection to the Karnataka Lokayukta’s closure report in the high-profile MUDA (Mysuru Urban Development Authority) case. The case names Chief Minister Siddaramaiah, his wife Parvati, and others as accused.

Judge Santhosh Gajanan Bhat reserved the order on April 9 after hearing detailed arguments from all sides.

The ED has formally opposed the closure report, arguing that it disregarded crucial findings and failed to consider material evidence submitted by the agency. The Lokayukta’s report had cleared Siddaramaiah, his wife Parvati, brother-in-law Mallikarjunaswamy, and landowner J. Devaraju, citing lack of sufficient evidence.

Petitioner Snehamayi Krishna, who has been pursuing the case, stated that he remains confident the court will reject the Lokayukta’s report. He further alleged that the closure report was influenced by CM Siddaramaiah, an allegation also presented before the court.

In its objection filed on April 2, the ED urged the court not to accept the closure report in the interest of justice and requested directions for a more thorough investigation. The agency also emphasized that money laundering charges, which form the crux of the case, cannot be ignored or dismissed lightly.

Senior advocate Madhukar Deshpande, representing the ED, argued that despite the Karnataka Lokayukta submitting a 'B Report' against the accused, the ED, as an independent agency, retains the right to challenge it. He cited Supreme Court rulings that empower the ED to intervene even after the local police file a closure report.

The MUDA case revolves around the alleged illegal allotment of 14 residential sites under the 50:50 ratio scheme to Parvati, the CM’s wife. It is alleged that these sites were granted in exchange for 3.16 acres of land that had been gifted to her by her brother, Mallikarjunaswamy. However, the ED has pointed out that she held no legal title to the land in question, casting doubt on the legitimacy of the allotment.

The ED’s objection further noted that evidence shared with the Lokayukta police regarding the land transaction in Survey Number 464 of Kesare village had not been duly considered. The agency highlighted irregularities in land acquisition, allotment procedures, and the suspected layering of proceeds of crime.

Earlier, on September 25, 2024, the special court had directed the filing of a private complaint (PCR), and an FIR was subsequently registered by the Lokayukta police in Mysuru. The ED launched its investigation under the Prevention of Money Laundering Act (PMLA) on October 1, 2024.

The high court had on March 7 quashed the ED’s summons issued to CM Siddaramaiah's wife and urban development minister Byrathi Suresh. Later, on March 12, petitioner Snehamayi Krishna filed a complaint with the Central Vigilance Committee (CVC) against senior IPS officers in the Lokayukta, raising concerns over the clean chit granted to the CM and his family.

He also filed a writ petition before the division bench of the high court, challenging the earlier single bench order that had dismissed his appeal for a CBI investigation into the MUDA case.