MUDA Scam Case: Bengaluru Special Court Accepts Closure Report Against CM Siddaramaiah Filed by Karnataka Lokayukta

Bengaluru, January 28: In a major development, the Special Court for MLAs/MPs in Bengaluru on Wednesday accepted the closure report filed by the Karnataka Lokayukta in connection with the Mysuru Urban Development Authority (MUDA) scam. The development is seen as a shot in the arm for Chief Minister Siddaramaiah amid the leadership tussle in the state. The court gave relief to the first accused in the case, CM Siddaramaiah, the second accused, his wife B.M. Parvati, the third accused, his brother-in-law Mallikarjuna Swamy and land owner J. Devaraj, named as the fourth accused. The court has directed that the probe against the other accused persons in the case. Activist Snehamayi Krishna has filed an appeal petition against the closure report against CM Siddaramaiah by the Karnataka Lokayukta.

The court stated that the B Report (closure report) filed by the investigating officer against Siddaramaiah, Parvathi, Mallikarjuna Swamy and Devaraj is hereby accepted. Needless to mention, the further investigation being conducted by the investigating officer against other accused persons shall continue, and he shall file the Final Report on completion of the investigation. "The application filed by the complainant to initiate contempt of court proceedings against the investigating officer is hereby rejected," the court said. MUDA Scam: Karnataka CM Siddaramaiah Rules Out Possibility of Resignation, Says ‘Conspiracy To Destabilise Congress Government’.

The court further stated, "It is held that the Enforcement Directorate (ED) is having right to intervene in the case as aggrieved persons to a limited extent. The office is hereby directed to return the CD files and also the draft copy of the final report kept in the sealed cover to the concerned investigating officer on proper identification. For filing the final report, call on Feb 9." It may be recalled that the Enforcement Directorate (ED), Bengaluru Zonal Office, has provisionally attached Proceeds of Crime having a market value of Rs 460 crore so far in the case under the provisions of PMLA, 2002. MUDA Land Scam: 'I Am Confident of Getting Justice, Case Against Me Is Politically Motivated', Says Karnataka CM Siddaramaiah.

ED initiated an investigation based on an FIR filed by Lokayukta Police Mysuru, in the case of large-scale scam in the illegal allotment of sites by Mysuru Urban Development Authority (MUDA). The searches revealed that the sites were allotted in gross violation of the letter dated March 14, 2023, and the government order dated October 27, 2023.Further, the search action also revealed a deep nexus between MUDA Officers/officials and real estate  businessmen. Evidence also revealed payment of cash for the allotment of sites as compensation and approval of layouts.

(The above story first appeared on LatestLY on Jan 28, 2026 11:29 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).