Mysuru: The Justice PN Desai Commission, which investigated alleged irregularities in the Mysore Urban Development Authority (Muda), has exposed a network of fraudulent practices between May 2020 and June 2024. The probe uncovered ghost compensation claims, resale of sites within days of allotment, and collusion between Muda officials, sub-registrars, and private parties.

While the commission gave a clean chit to Chief Minister Siddaramaiah and his family, it detailed how Muda’s processes were exploited to generate fraudulent claims running into crores.

Compensation in the names of the deceased

One of the commission’s most startling findings was that compensation claims were filed in the names of deceased landowners or those who were unavailable to receive payments. Instead of depositing compensation amounts with the court, as mandated by the Land Acquisition Act, Muda failed to follow due process. This created scope for fraudulent site allotments on the grounds that compensation had not been paid.

The report stated: “In such cases, as per the land acquisition act, the compensation has to be deposited in the court… But in a large number of cases, such an amount… was not redeposited into the court. This resulted in parties claiming compensation in the form of sites stating that compensation was not paid to them.”

Fresh claims despite relinquishment deeds

The probe also flagged cases where landowners, who had already executed registered relinquishment deeds in favour of Muda, were able to make fresh claims. The lack of mutation meant that Muda’s ownership was never recorded in the Record of Rights, Tenancy and Crops (RTC). Decades later, false claims resurfaced, enabling individuals to demand sites as compensation once again.

Resale racket and inflated valuations

The commission unearthed a widespread resale racket, where compensation sites were sold within days or weeks of being allotted. In some cases, properties changed hands multiple times within three months, each time at a higher value.

“It is also noted from the records that such subsequent purchase has again sold the said property for higher consideration,” the report observed. Some resale transactions reflected price jumps of Rs 10–15 lakh within weeks.

The role of sub-registrars came under scrutiny, with the report questioning how drastic variations in valuation were approved in such short spans of time. “It is very strange that how the sub-registrar determines and accepts the market value of the same property shown in the sale deed with such large variation,” the report remarked.

Collusion and deliberate malpractice

The commission concluded that the irregularities were not isolated mistakes but deliberate acts. It stated that successive Muda commissioners and officials, in collusion with land grabbers, facilitated fraudulent site allotments, repeated sales, and bogus claims.

Modus operandi of the scams

The report listed several methods used to exploit loopholes:

  • Multiple sales of the same site: Allotted plots sold within days, often multiple times in months, inflating prices.
  • Compensation in the names of deceased: Fraudulent claims made for landowners who had died or were unavailable.
  • Non-registration and mutation gaps: Relinquished lands not updated in RTC records, enabling repeated claims.
  • Boundary manipulation: Demarcations erased to legitimise false claims.
  • Sub-registrar role: Market values with large variations accepted without scrutiny.
  • Alternate site allotments: Compensation offered for alleged encroachment, smaller plots, or even non-existent sites.
  • Bogus road claims: Compensation issued for land supposedly acquired for ring or outer ring roads, though records showed otherwise.

Way forward

The commission’s findings paint a troubling picture of systemic corruption within Muda, with patterns of collusion designed to exploit public land. While top political figures were cleared, the report strongly implicates commissioners, officials, and sub-registrars.

The revelations are expected to trigger further investigations and legal action, even as public confidence in Mysuru’s urban governance continues to erode.