Mysuru: The Karnataka government has taken a major decision in the controversial Mysuru Urban Development Authority (MUDA) 50:50 plot allocation case, ordering the cancellation of around 1,100 replacement plots allegedly allotted in violation of rules.
Urban Development Minister Dr Yathindra Siddaramaiah has directed MUDA to immediately cancel the disputed allocations.
Under the 50:50 scheme, landowners whose properties were acquired for development were entitled to 50% of developed plots in return as compensation. The policy, introduced in 2020, later came under scrutiny over allegations that expensive plots were allotted to ineligible beneficiaries without proper approval from the MUDA board.
The government has now estimated that the disputed allocations involve public property worth around ₹2,000 crore.
Although the government had ordered a halt to 50:50 allocations in March 2023, allegations surfaced that allotments continued despite the restrictions.
Following investigations by the Justice P.N. Desai Commission and a technical committee, authorities reportedly found violations of the prescribed rules and ordered cancellation of the allocations.
MUDA has been directed to approach the civil court to legally cancel plots that have already been registered. Local authorities have also been instructed not to create new property accounts for such sites and to cancel accounts already created.
The government has further barred MUDA from issuing new purchase orders until further orders.
