In a significant move to curb irregularities, the Karnataka government has issued directives to the Mysuru Urban Development Authority (MUDA) for the immediate cancellation of approximately 1,100 alternative sites that were allotted in violation of established norms. These sites, located in Mysuru, are collectively valued at an estimated ₹2,000 crore. The decision, conveyed through an Urban Development Department letter dated August 19, 2026, mandates MUDA and other relevant authorities to implement the recommendations of a High-Level Technical Committee.
The primary reason for this large-scale cancellation is the violation of a government directive from March 14, 2023, which prohibited such alternative site allotments. For properties where sale deeds have already been registered, the government has instructed authorities to file civil suits to seek their cancellation. Furthermore, in cases where sale deeds are yet to be executed, MUDA has been ordered to halt the process until new guidelines are framed and appropriate directions are issued by the government.
This action comes after a commission, constituted by former Chief Minister Siddaramaiah, highlighted substantial increases in claims for the '50:50 land compensation scheme' between 2020 and 2024, leading to opportunities for beneficiaries to secure high-value sites, allegedly with the collusion of MUDA officials. The commission's findings revealed instances where multiple sites were illegally allotted to individuals not entitled to compensation. The Urban Development Minister, Yathindra Siddaramaiah, confirmed that this is the first phase of action, with a second phase planned to review allotments made before March 14, 2023, to identify further irregularities.
