Acting on the recommendations of the single-member inquiry commission and the report of the high-level technical committee constituted to probe alleged irregularities in the allotment of 50:50 alternative sites by the Mysuru Development Authority (MDA), the State government has ordered the cancellation of around 1,100 alternative sites allotted under the controversial 50:50 scheme in violation of the March 14, 2023, directive.

Urban Development Minister Yathindra Siddaramaiah said on Wednesday that the sites proposed for cancellation are estimated to be worth around ₹2,000 crore. The government order issued on Wednesday stated that all 50:50 alternative site allotments made in violation of the prescribed conditions are to be cancelled with immediate effect.

The government also issued directions to the MDA Chairman/Deputy Commissioner, the MDA Commissioner, and the local bodies concerned to take necessary action with regard to such allotments.

MUDA allotments came under scrutiny after Chief Minister Siddaramaiah faced allegations of irregularities in the allotment of 14 sites, reportedly worth ₹56 crore, to his wife, Parvathi. Following the controversy she surrendered the sites. A special court in Bengaluru later accepted the ‘B’ report filed by the Karnataka Lokayukta in the case.

The Directorate of Enforcement (ED), which has also been probing allocation of alternate sites by MUDA, has alleged large-scale irregularities.

Civil suits

As per the order issued on Wednesday, the authorities have been instructed to file civil suits seeking cancellation of the sale deeds if alternative sites have already been registered with the sub-registrars. In cases where sale deeds have not yet been executed, the MDA has been directed not to issue them until the government frames clear guidelines and issues further directions.

Importantly, the Mysuru City Corporation, municipalities and gram panchayats have been directed to stop the khata process for sites that have already been registered.

If khatas have already been issued, the local bodies have been directed to cancel them in accordance with the provisions of the Karnataka Municipal Corporations Act, 1976, Karnataka Municipalities Act, 1964, and Karnataka Gram Swaraj and Panchayat Raj Act, 1993.

The authorities have been asked to submit a compliance report to the government immediately. The government has warned that failure to implement the directions will invite appropriate action against the officials concerned.

Dr. Yathindra said the action would be taken in two phases. The first phase covers allotments made after March 14, 2023, in violation of the prescribed rules. In the second phase, the government will examine allotments made before March 14, 2023, to ascertain whether any rules were violated.

Published - August 19, 2026 09:35 pm IST