A special court designated for cases involving elected representatives has formally accepted the closure report submitted by the Karnataka Lokayukta police in the high-profile Mysore Urban Development Authority (MUDA) case against Chief Minister Siddaramaiah and three other individuals. The court, in its Wednesday order, also delineated the scope of the Enforcement Directorate's (ED) involvement, permitting intervention only to a "limited extent" as an aggrieved party in the ongoing investigation.
Court's Detailed Order and Investigation Timeline
The Lokayukta police had initially filed the 'B' report, signifying closure due to insufficient evidence, in February 2025. This report pertained specifically to allegations of corruption against Siddaramaiah, his wife B M Parvathi, his brother-in-law Mallikarjun Swamy, and a former landowner, J Devaraj. However, the court had deferred its acceptance to allow the Lokayukta to complete a broader probe into corruption allegations within MUDA's land allotment processes.
On January 13, 2026, the Lokayukta provided the court with a draft of its final report concerning this larger investigation. Following this, the special court issued its order, stating: "The 'B' Report filed by the Investigating Officer against accused No.1 Sri Siddaramaiah, accused No.2 Smt B M Parvathi, accused No.3 Sri Mallikarjuna Swamy and accused No.4 Sri J Devaraj, is hereby accepted." The court further directed the police to continue their investigations against other accused individuals and instructed the Lokayukta to file a final report on those matters.
Origins of the Case and Key Allegations
The case originated from a private complaint filed by RTI activist Snehamayi Krishna. The allegations were registered as a First Information Report (FIR) in September 2024 after receiving sanction from Governor Thawarchand Gehlot. Krishna alleged that Chief Minister Siddaramaiah had illicitly gained approximately ₹56 crore through a transaction where his wife, Parvathi, received 14 housing sites from MUDA in 2021 in exchange for a 3.16-acre plot of land.
In the wake of the controversy, Parvathi returned all 14 housing sites to MUDA. Following the Lokayukta's closure report in February 2025, both the ED and the complainant Krishna challenged the report. Krishna specifically sought a Central Bureau of Investigation (CBI) probe into the matter.
Enforcement Directorate's Role and Judicial Interventions
The ED, investigating the money laundering aspects of the alleged MUDA scam, contended that its probe had uncovered widespread irregularities in site allotments, with various statutes and government guidelines being flouted. However, the agency faced legal hurdles when the Karnataka High Court, and later the Supreme Court, quashed its summons issued in March 2025 to Parvathi and Karnataka Urban Development Minister B S Suresh. The courts emphasized that individuals cannot be compelled to provide statements under the Prevention of Money Laundering Act (PMLA) when no incriminating evidence has been established against them.
Despite this, the special court permitted the ED to continue its PMLA investigations. Subsequently, in November 2025, the ED filed a prosecution complaint against former MUDA commissioner G T Dinesh Kumar, who had been arrested by the agency in September 2025 and later by the Lokayukta police in December.
Contempt Plea and Judicial Commission Findings
The petitioner, Snehamayi Krishna, also filed a contempt of court plea against the Investigating Officer, citing delays in the probe. The special court had previously set a two-month deadline for the Lokayukta to file its final report, which expired in December 2025. The court, however, rejected this contempt plea in its Wednesday order.
In a parallel development, a judicial commission established by the Siddaramaiah government to investigate corruption and maladministration in MUDA submitted its report in September 2025. The commission concluded that there was no wrongdoing by the Chief Minister's family in the specific case. However, it identified large-scale irregularities in MUDA's functioning during the 2020-2024 period—a timeframe overlapping with the previous BJP-led state government.
The commission recommended investigations against MUDA officials and suggested the cancellation of site allotments made after March 2023 under a scheme for providing alternative sites as compensation for acquired land. The panel criticized the scheme as being "filled with loopholes" and seemingly designed to benefit illegal claimants, noting a suspicious surge in compensation claims during the 2020-24 period that may have involved connivance with MUDA officers.
