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Karnataka government cancels Mysuru Development Authority's 50:50 site allotments due to irregularities

Karnataka government cancels ~1,100 MDA site allotments after irregularities surfaced, aiming to restore integrity in land deals. Move targets ₹2,000 crore worth of sites amid corruption concerns linked to Chief Minister Siddaramaiah.

BRIC Team
By BRIC Team · BRIC.TV
Published Aug 19, 2026 · 2 min read · 49 views
Karnataka government cancels Mysuru Development Authority's 50:50 site allotments due to irregularities

Key Takeaways

  • Karnataka cancels 1,100 controversial land allotments under 50:50 scheme
  • Decision aims to address corruption and restore public trust
  • Investigations will proceed in two phases for transparency
  • Authorities face disciplinary action for non-compliance with directives

The Karnataka government has moved to cancel approximately 1,100 alternative site allotments made under the controversial 50:50 scheme by Mysuru Development Authority (MDA). This decision follows recommendations from a single-member inquiry commission and a high-level technical committee that investigated alleged irregularities in the allotment process.

Urban Development Minister Yathindra Siddaramaiah announced the cancellation on Wednesday, emphasizing that the sites in question are valued at around ₹2,000 crore. The government’s order mandates immediate action against all allotments that violated conditions set forth in a directive issued on March 14, 2023 .

The scrutiny of MDA allotments intensified after Chief Minister Siddaramaiah faced accusations regarding the allocation of 14 sites, reportedly worth ₹56 crore,to his wife,Parvathi. A special court in Bengaluru subsequently accepted a report from the Karnataka Lokayukta, which further fueled concerns over the legitimacy of these transactions .

In bid to rectify the situation,the government has instructed the MDA Chairman, Deputy Commissioner, and relevant local bodies to take necessary actions regarding the allotments. Authorities have been directed to file civil suits to cancel any sale deeds if the alternative sites have already been registered with sub-registrars. For sites where sale deeds have not yet been executed, the MDA must refrain from issuing them until new guidelines are established.

Additionally,the Mysuru City Corporation, municipalities,and gram panchayats have been ordered to halt the khata process for sites that have been registered. If khatas have already been issued, local bodies must cancel them in compliance with the Karnataka Municipal Corporations Act,1976,the Karnataka Municipalities Act, 1964,and the Karnataka Gram Swaraj and Panchayat Raj Act,1993. Authorities are required to submit a compliance report to the government without delay.

The government has warned that failure to adhere to these directives will result in disciplinary action against officials involved. Minister Siddaramaiah outlined that the cancellation process will occur in two phases. initial phase targets allotments made after the March 14 directive, while second phase will investigate earlier allotments to determine if any rules were breached .

This decisive action reflects the government's commitment to addressing corruption and ensuring transparency in land allotments. The outcome of these investigations could have significant implications for local governance and public trust in MDA.

#Karnataka

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